Microgrids (ℳ-grids) can be thought of as a small-scale electrical network comprised of a mix of Distributed Generation (DG) resources, storage devices, and a variety of load species. It provides communities with a stable, secure, and renewable energy supply in either off-grid (grid-forming) or on-grid (grid-following) mode. In this work, a control strategy of coordinated power management for a Low Voltage (LV) ℳ-grid with integration of solar Photovoltaic (PV), Battery Energy Storage System (BESS) and three phase loads operated autonomously or connected to the utility grid has been created and analyzed in the Matlab Simulink environment. The main goal expressed here is to achieve the following points: (i) grid following, grid forming modes, and resynchronization mode between them, (ii) Maximum Power Point Tracking (MPPT) from solar PV using fuzzy logic technique, and active power regulator based boost converter using a Proportional Integral (PI) controller is activated when a curtailment operation is required, (iii) ℳ-grid imbalance compensation (negative sequence) due to large single-phase load is activated, and (iv) detection and diagnosis the fault types using Discrete Wavelet Transform (DWT). Under the influence of irradiance fluctuation on solar plant, the proposed control technique demonstrates how the adopted system works in grid- following mode (PQ control), grid- formation, and grid resynchronization to seamlessly connect the ℳ-grid with the main distribution system. In this system, a power curtailment management system is introduced in the event of a significant reduction in load, allowing the control strategy to be switched from MPPT to PQ control, permitting the BESS to absorb excess power. Also, in grid-following mode, the BESS's imbalance compensation mechanism helps to reduce the negative sequence voltage that occurs at the Point of Common Coupling (PCC) bus as a result of an imbalance in the grid's power supply. In addition to the features described above, this system made use of DWT to detect and diagnose various fault conditions.