Abstract: Micro grids are emerging as one of the promising solutions to integrate various types of distributed renewable energy sources with the utility grid. Though the existing grids are AC grids, today’s electrical loads comprising of power electronic based equipment and distributed renewable energy generation make DC micro grids more attractive. However, an individual AC micro grid and DC micro grid requires multiple conversions of power at the user end for DC loads and AC loads respectively, resulting in less efficient system. Thus, hybrid AC/DC micro grid seems to be the best solution to avoid substantial energy losses in multiple conversions. However, there are several technical challenges in the implementation of hybrid AC/DC micro grid, which need to be addressed. This paper presents an overview of hybrid AC/DC micro grid and discusses the important key issues and challenges to be overcome for its practical implementation. Keywords: Micro grids, AC, DC