This paper introduces a modified Andronov-Hopf Oscillator for improved grid-forming inverter operation under balanced, unbalanced, and nonlinear loads. Unlike traditional models, this design adapts the limit cycle to an ellipse for unbalanced loads and a distorted curve for nonlinear loads, eliminating the need for additional control mechanisms and simplifying system architecture. The oscillator enhances voltage quality with reduced harmonic distortion, improving system robustness and adaptability. It offers a scalable solution for integration into existing infrastructures, optimizing energy distribution and reducing operational costs. This novel approach can not only facilitate the transition to inverter-rich grids but also address challenges in integrating renewable energy. Extensive simulations and case studies highlight its potential. The system’s effectiveness is validated through implementations in MATLAB/Simulink and PLECS along with real-time controller hardware in the loop, underscoring its ability to enhance power quality under different loading conditions.