Control of a stand‐alone squirrel cage induction generator‐based distributed generation system with variable linear, nonlinear, and unbalanced loads is developed in this paper. The combined control developed in the work is using both the load and machine side converter to meet the required objectives. The control structure is intended to get rid of the harmonic component for the duration of nonlinear loading, and to confiscate the negative (backward) sequence component during unbalance loading. The magnitude and frequency of output voltage are maintained during these conditions, as well as with step increment in linear load. A back‐to‐back converter is used to implement the combined control in this work. The control algorithm of generator side converter is to match the input power level with the demand. The major operations performed with the control covers (a) 100% increment of linear load, (b) 47.2% unbalanced load, and (c) complete shift to nonlinear load.