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Nowadays, the popularity of grid integrated systems primarily supplied by renewable energy sources based hybrid Microgrids have increased. This is due to their ability to reduce global warming and meet the increasing electrical load demand worldwide. In order to guarantee an uninterrupted power supply to loads when operating in the operation of off-grid, the system incorporates a storage device, thereby establishing an effective energy management system. A new energy management system has been developed to enhance the stability of the proposed system. The system has the ability to stabilize voltage at the load bus, compensate for reactive power, and mitigate the harmonics as well as the effect of unbalanced load. In order to attain quick reactions amidst swift alterations, the suggested control technique has integrated LSTM controllers. Practical outcomes have been achieved by leveraging Hardware-in-the-Loop using OPAL-RT modules. Numerous case studies have been carried out to further confirm the efficacy of the suggested approach.