This paper presents a new software-based on-line dead-time compensation technique for a single-phase grid-connected photovoltaic (PV) inverter system. To prevent a short circuit in the inverter arms, a switching delay time must be inserted in the pulse width modulation (PWM) signals. This causes the dead-time effect, which degrades the system performance around zero-crossing point of the output current. To reduce the dead-time effect around the zero-crossing point of grid current, a harmonic mitigation of grid current is used as an additional part of the synchronous frame current control scheme. This additional task mitigates the harmonic components caused by the dead-time from the grid current. Simulation and experimental results are shown to verify the effectiveness of the proposed dead-time compensation method in the single-phase grid-connected inverter system.