The paper presents a novel control strategy for grid-interfacing inverters connected to renewable energy sources (RES) in 3-phase 4-wire distribution systems, aimed at enhancing power quality. It demonstrates that such inverters can simultaneously inject active power, support reactive power demand, and compensate for current harmonics and unbalance, effectively operating without additional hardware. Extensive simulations confirm the effectiveness of the approach in achieving balanced and sinusoidal grid currents at unity power factor under varying load conditions.