This paper presents the design methodology of an alternative approach for implementing proportional-resonant (PR) controller for single-phase grid-tied inverter. The developed PR controller is designed to regulate the grid current with the aim of controlling either the DC-link voltage or the active/reactive power injected into the grid. The control design is based on combining a state feedback controller with a disturbance observer. It turns out that the composite controller can be expressed as a PR controller plus an anti-windup scheme. The latter is required by the resonant portion of the PR controller to attenuate the effect of the control input saturation during transients. The performance of the existing PR controller was investigated under control saturation to highlight the poor transient performances associated with modulating signal limitation. The performance of the proposed controller was verified by simulation tests. The obtained results demonstrated good transient performances compared with the existing PR controller.