Control structures have critical influences on converter-interfaced distributed generations (DG) under unbalanced conditions. Most of previous works focus on suppressing active power oscillations and ripples of DC bus voltage. In this paper, the relationship between amplitudes of the active power oscillations and the reactive power oscillations are firstly deduced and the hierarchical control of DG is proposed to reduce power oscillations. The hierarchical control consists of primary and secondary levels. Current references are generated in primary control level and the active power oscillations can be suppressed by a dual current controller. Secondary control reduces the active power and reactive power oscillations simultaneously by optimal model aiming for minimum amplitudes of oscillations. Simulation results show that the proposed secondary control with less injecting negative-sequence current than traditional control methods can effectively limit both active power and reactive power oscillations. (C) 2016 Elsevier Ltd. All rights reserved.