This paper presents a design and an implementation of an isolated grid connected micro inverter system that is based on an interleaved flyback topology. The developed system gets input from a 250 W PV panel, converts the dc energy into ac and connects it to the grid. This work covers the simulation aspect of developing the above mentioned system where extensive simulations are performed in order to find and optimize values of desired parameters and simulate the overall system. The CCM (Continues Conduction Mode) of operation for the flyback converter is preferred as it generates considerably less amount of the current ripple at converter output when compared to DCM operation and less amount of power loss. A feedback loop with a PI controller is incorporated into the design in order to properly stabilize the system. Simulation results demonstrated that the developed system generates sinusoidal voltage and current signals of 50 Hz in frequency with desired amplitudes at the output of the system. Connection of generated ac waveforms to the grid is accomplished by means of a PLL block. THD of the grid current is found as 11.57% due to spikes at zero crossings.