This paper presents a reliable microgrid for residential community with modified control techniques to achieve enhanced operation during grid connected, islanded, and resynchronization mode. The proposed microgrid is a combination of solar photovoltaic, battery storage system and locally distributed generation (DG) systems with residential local loads. A modified power control technique is developed such that local load reactive power demand, harmonic currents, and load unbalance are compensated by respective residential local DG. However, active power demand of all local residential load is shared between the microgrid and respective local DG. This control technique also achieves constant active power loading on the microgrid by supporting additional active power local load demand of respective residential DG. Hence, proposed modified power control technique achieves transient free operation of the microgrid during residential load disturbances. An additional modified control technique is also developed to achieve seamless transition of microgrid between grid-connected mode and islanded mode. The dynamic performance of this microgrid during grid-connected, islanded, and resynchronization mode under linear and nonlinear load variations is verified using real-time simulator.