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Multi-functional voltage source inverters (VSIs) have attracted increasing attention in recent years for their advantageous auxiliary services for power quality enhancement in autonomous microgrids. These types of VSIs can not only achieve a proper control scheme in autonomous mode but also cope with the prescribed power quality and stability requirements. These functionalities are integrated within the same device, thereby significantly improving the cost-effectiveness of microgrids while decreasing the investment and bulk compared with those of multiple devices with independent functionalities. Control strategies for power quality enhancement in autonomous microgrids using multi-functional VSIs are comprehensively reviewed in this paper. In addition, such VSIs are discussed in detail, and comparisons of which are also provided. Lastly, a number of future research directions for multi-functional VSIs are recommended.