A system and method for estimation of grid impedance in a power converter controller is disclosed in which a current controller is provided to inject an injection current while operating online and coupled to a power grid at a point of common coupling (PCC), the injection current being benign to an operating current of the power converter. A voltage controller is provided to regulate input voltage of the power converter. An impedance module is provided to determine parameters for the injection current, including injection interval and duration, current magnitude, current frequency, and symmetrical components. The impedance module may extract measurements of current and voltage at the PCC at an operating point shifted from a previous operating point in response to the injection current. The impedance module may extract symmetrical components of current and voltage measurements, and compute estimated grid impedance based on the extracted symmetrical components.