The concept of universal power converter (UPC) based hybrid AC and DC distribution system architecture is proposed, which can solve the traditional AC distribution power quality problems and satisfy the demand of DC distribution development. First, a novel UPC system structure combining the voltage balancing controller (VBC) with the four-leg based three-phase four-wire voltage source converter (VSC) is adopted, using the overall coordination control scheme of the AC current tracking compensation based grid-interfaced VSC and the constant DC current burst mode based VBC. In the end, the 75 kW simulation experimental system is designed and tested to verify the performance of the proposed UPC under DC distribution and distributed DC sources conditions, as well as the power quality management of AC distribution.