This paper presents integration of solar-wind hybrid fed DC-grid to distributed AC grid. Generally, the renewable hybrid energy systems use two or more energy sources to supply power to the dc grid. In case of insufficient power generation or excessive load demand, in order to supply power to DC loads, it must integrate with AC grid. As dc loads increase in number, complexity increases and tighter voltage regulation is required. This paper presents dual mode control operation of inverter which integrates the solar and wind power fed dc bus to the single phase ac distribution system. The inverter can be operated in hysteresis current control when power is fed from DC grid to AC distributed grid and in AC-DC boost rectifier mode otherwise. The detailed operation of dual mode control of inverter is described in this paper. The effectiveness of the proposed system has been verified through simulation studies using MATLAB/SIMULINK.