The growing interest in connecting more distributed generation (DG) units to the utility grid, microgrids deal with the various challenges to satisfy a sufficient level of ancillary services such as active power oscillations (APOs), reactive power oscillations (RPOs), fault ride-through (FRT) capability, and overcurrent problem. Hence, for parallel operated grid-connected inverters (GCIs) based MG, this study presents a multi-objective control scheme that simultaneously ensures elimination of the collective APOs/RPOs at point of common coupling (PCC), overcurrent protection and reactive power injection. One of the significant parts of this study compared with similar existing studies is that provides reactive power support capability to fulfil the FRT requirements of the grid-connected multi-DG units and to remain grid-connected during asymmetrical grid faults. A current restraining control is also presented to ensure the safe operation of the MG system and to avoid overcurrent. The cancellation of the collective APOs and RPOs at the PCC for parallel operation of the GCIs has been achieved by using adjustable control coefficients and demonstrated with theoretical analyses in detail. Extensive case studies are presented and discussed to demonstrate the performance of the proposed ideas and to meet the shortcomings of the previous studies.