This paper presents a novel hierarchical control scheme based on Model Predictive Control (MPC) for a Voltage Source Inverter (VSI) operating under conditions of unbalanced and nonlinear loads. The increasing prevalence of renewable energy sources and the proliferation of power electronic devices has led to a growing need for robust control strategies that can effectively handle the challenges associated with unbalanced and nonlinear loads in power distribution systems. In this work, a two-hierarchy control structure is proposed, based on a full MPC strategy. The MPC controller in the first hierarchy is responsible for optimizing the VSI's switching states in real-time, taking into account the system's constraints and the desired performance criteria of the output voltage of the VSI. The MPC controller in the second hierarchy regulates the output current of the VSI to track the reference values for the load and grid power. The proposed control scheme addresses the challenges posed by unbalanced and nonlinear loads, the simulation results demonstrate the effectiveness of the proposed hierarchical control strategy in mitigating voltage deviations, minimizing harmonic distortions, and ensuring balanced operation in the presence of unbalanced and nonlinear loads. The presented approach offers a promising solution for enhancing the performance and stability of VSI-based power distribution systems, thus contributing to the overall reliability and efficiency of modern electrical grids.