The proliferation of nonlinear loads and integration of renewable energy sources require attention for accurate harmonic estimation along with estimation of fundamental amplitude, phase, and frequency for protection, improving power quality, and managing power effectively in a smart distribution grid. There are currently different Windowed Interpolated Fast Fourier Transform (WIFFT) algorithms for harmonic voltage estimation, but estimation of current harmonics using WIFFT is not explored sufficiently. The existing WIFFT algorithms, when used for current harmonic estimation result in low accuracy due to spectral leakage and picket fence effect. On the other hand, Interpolated Discrete Fourier Transform (DFT) is used for synchrophasor quality metrics, but it is effective only when there are no harmonics and the fundamental frequency is constant. This paper proposes a unified solution, comprising of peak location index search (PLIS)-based Dual-Spectrum Line Interpolated Fast Fourier Transform (DSLIFFT) algorithm with 4-Term Minimal Sidelobe Cosine Window (4MSCW) for estimating both low-amplitude voltage or current harmonics and synchrophasor under variable frequency conditions for high-penetration renewable energy utility grids. The effectiveness of the proposed algorithm is validated by simulation studies and real-time experimentation using the National Instruments reconfigurable embedded system under nonlinear loading conditions.