The proliferation of next-generation renewable energy systems has driven widespread adoption of electronic devices and nonlinear loads, causing grid distortion that degrades waveform quality in grid-forming (GFM) converters. Additionally, unbalanced grid faults exacerbate overcurrent risks and transient stability challenges when employing conventional virtual impedance strategies. While existing studies have separately examined these challenges, few have comprehensively addressed non-ideal grid conditions. To bridge this gap, a novel control strategy is proposed that reshapes the output current waveforms and enhances transient stability in GFM converters under such conditions. First, a sliding mode controller with an improved composite reaching law to achieve rapid reference tracking while eliminating chattering is designed. Second, a multi-quasi-resonance controller incorporating phase compensation is introduced to suppress harmonic distortion in the converter output current. Third, an individual-phase fuzzy adaptive virtual impedance strategy dynamically reshapes the current amplitude during unbalanced faults and improves the system’s transient stability. Validated through PSCAD/EMTDC simulations and hardware-in-the-loop experiments, the proposed strategy demonstrates superior transient stability and fault ride-through capability compared to state-of-the-art methods, ensuring reliable GFM converter operation under severe harmonic and unbalanced grid conditions.