This thesis presents a hybrid AC and DC micro grid as a solution for efficient and sustainable power system. The system directly integrates DC/AC renewable sources and loads to DC/AC links respectively. The disadvantage of AC grids for connection of DC inherent sources and loads as well as AC loads with DC links is that additional DC/AC or AC/DC converters are required, which may result in efficiency loss from the reverse conversion. Also in DC grids AC sources have to be converted into DC before connected to a DC grid and DC/AC inverters are required for conventional AC loads. This conversion again will result in power loss. And this conversion loss is presented as a main problem in this thesis Therefore to avoid this reverse conversion in a single grid, coexistence of both AC and DC grid is proposed as a solution. The hybrid grid eliminates multiple DC-AC-DC and AC-DC-AC conversions in an individual AC and DC grid. The grid model is introduced; control and operation of renewable sources, energy storages and loads were analyzed. From the result of the analysis the efficiency improvement in using AC and DC Micro hybrid grid is from 85.61 %to 92.35 %, that is 7.24%.