This paper discusses the optimization of a cascaded multilevel inverter for microgrids using Particle Swarm Optimization (PSO) to minimize total harmonic distortion and enhance voltage stability. It emphasizes the increasing relevance of microgrids, which incorporate distributed energy sources like solar, wind, and fuel cells, as part of a modern electrical grid. The study presents a methodology to reduce harmonic distortion through effective waveform optimization and simulation results demonstrating the benefits of the proposed approach.