To demonstrate advanced distributed generation system integration strategies， a single-phase laboratory-scale microgrid system is set up. Two micro sources are included in the microgrid， a photovoltaic simulator and a wind turbine simulator. They are connected to the AC grid via a flexible power electronic interface respectively. To maintain stable operation， a battery energy storage system is connected via a bi-directional inverter in the microgrid. In the grid-connected mode， both micro source inverters and bi-directional inverter are in the constant power control mode. In the islanded mode， the bi-directional inverter switches to the voltage and frequency control mode by absorbing or releasing energy. Experimental results show that the laboratory-scale microgrid system can operate in either grid-connected or islanded mode， with a seamless transfer from one to another， and hence increase the reliability of energy supplies.