Smoothing grid profile plays a crucial role in dynamic operation of microgrid. This paper focuses on reducing the grid power fluctuation in a grid connected microgrid due to stochastic nature of renewable generations and its impact on the stability and quality of distribution network. To achieve this, the control strategies are designed to control the charging/discharging of battery storage system based on the difference between generations of renewable energy resources and load demand as well a battery state. Fuzzy logic controller is applied in energy management system (EMS) of microgrid by considering dramatic behavior of renewable energy resources while maintaining battery state within secure limits. A comparison with time‐based constant and variable charge/discharge control of battery presents in simulation experiment to demonstrate the effectiveness of the proposed fuzzy controller in a residential AC microgrid.