Abstract-Model predictive control (MPC) concepts applied in novel variable reactor fordeveloping integrated power quality controller (IPQC) using magnetic flux control is proposed for improving power quality in a microgrid such as the harmonic high penetration, frequent voltage fluctuation and over current phenomenon, For the fundamental, the equivalent impedance of the primary winding is a variable reactor. MPC is applied into IPQC to regulate the supply current and the load voltage to the desired reference signals in spite of the existence of harmonic distortions in the supply voltage and the load current, possible sags or swells in the supply voltage, and variations in the load current. The design of the MPC controller is subsequently analyzed in details. The simulation studies are finally presented to verify the performance of MPC.