In some applications of microgrids and distributed generation, it is necessary to feed islanded or stand-alone loads with high-quality voltage to provide low total harmonic distortion (THD). To fulfil these demands, an LC filter is usuallyconnected to the output terminals of power electronics converters. A cascaded voltage and current control loop with pulse-width modulation schemes are used to regulate the voltages and currents in these systems. However, these strategies have some drawbacks, particularly when multiple-input−multiple-output plants (MIMO) are controlled using single-input−single-output (SISO) design methods. This methodology usually produces a sluggish transient response and cross−coupling between different control loops and state variables. In this paper, a model predictive control (MPC) strategy based on the concept of optimal switching sequences (OSS) is designed to control voltage and current in an LC filter connected to a three-level neutral-point clamped converter. The strategy solves an optimisation problem to achieve control of the LC filter variables, i.e., currents and output voltages. Hardware-in-the-loop (HIL) results are obtained to validate the feasibility of the proposed strategy, using a PLECS−RT HIL platform and a dSPACE Microlab Box controller. In addition to the good dynamic performance of the proposed OSS−MPC, it is demonstrated using HIL results that the control algorithm is capable of obtaining low total harmonic distortion (THD) in the output voltage for different operating conditions.