This paper propose the advanced topology of UPQC, its DC link is connected with Lithium battery, to compensate the momentary interruptions. The proposed system can be operated as UPS mode using the parallel inverter, which control the charge or discharge of battery, in case of the interruption. We dvelop 100kVA UPQC using the proposed topology to rise the power quality and the reliability of Microgrid. We verify its usefulness through voltage compensation test, UPS operation test and etc. using Microgrid test facility.