This paper proposes an intelligent seamless transition controller for smooth transition between grid-connected (GC) and standalone modes of distributed generation (DG) units in the grid. The development of this seamless controller contributes to two main processes in the transition modes: the synchronization process and an islanding process. For the synchronization process, the stationary reference frame phase-locked loop (SRF-PLL) associated with the voltage source inverter (VSI) is modified using the frequency, voltage deviation, and phase angle information. Furthermore, the islanding process is classified as intentional and unintentional islanding scenarios for achieving efficient transition control. Here, the intentional islanding process is achieved with the information that is available in the system due to the planned disconnection. For the unintentional islanding process, a fuzzy inference system (FIS) is used to modify the conventional droop control using the information of change in active power, voltage, and frequency. To identify the action of the proposed approach during the transition process, numerical simulations are conducted with the hardware-in-loop (HIL) simulator by developing a 10kWp three-phase grid-connected DG system. The results identified the efficient control of the VSI for both islanding and grid connection processes. In the islanding conditions, the proposed controller provides advantage with less detection and disconnection time, and during synchronization, it instantly minimizes the phase-angle deviation to achieve efficient control.