Nanogrid is “The new ray of hope” for people living in remote isolated locations as well as where power supply reliability is poor. A nanogrid is a small power capacity distribution system with the ability to operate standalone or with a utility grid. It consists of local power production supplying local loads and energy storage systems. In this paper, an innovative inverter design is presented, which converts the power in a single stage. It is superior to the traditional two-stage inverter system and can supply hybrid loads (AC and DC loads) with a single input. System AC and DC bus voltages are regulated under both steady-state and dynamic load variation conditions in the nanogrid. Simulation results are presented which confirm the suitability of the inverter and its control strategy for a hybrid nanogrid system.