The first problem in our third millennium is energy. For this raison, we try to find a new solution to develop different ways of distribution and energy use. This article presents the design of a sliding mode controller using sliding mode observation technique which aims to simplify the control procedure.  For ameliorating the quality of the energy transferred from the power supply to the load, and minimizing the harmful effects of the harmonics generated by nonlinear load. The virtual grid flux vector estimated in the sliding-mode observer yields robustness against the line voltage distortions.  We propose a new multi-function converter as an efficient solution to improve the power quality. The good dynamic and static performance under the proposed control strategy is verified by simulation and experiment.