This study delivers a new approach for reference signal generation to improve the power quality problem of Doubly Fed Induction Generator (DFIG). DFIG consists of RSC (Rotor Side Converter) and GSC (Grid Side Converter) and common DC-Link. RSC converter used to mitigate the sag and swell compensation by enhanced phase lock loop and variable speed Limit. The aim of GSC is to mitigate the current harmonics and load balancing control by non-linear adaptive filter approach. The 60% of DC-Link voltage control obtained by GSC and remaining 40% of sag is controlled by the external chopper through the DC-Link voltage balancing. Additional chopper is presented to reduce the size, stress of DC-Link capacitor and also it avoids additional control loop in GSC. The system power qualities are verified through simulation studies.