Paralleling of voltage source converters (VSCs) with a limited maximum output power is essential when the power rating of a system must be increased. Interleaving (ILV) of the switching signals for parallel-connected VSCs provides a better harmonic spectrum than hard paralleling (HP), i.e., applying identical signals to all VSCs. This can be particularly beneficial for grid-tied converters, since a smaller LCL filter can be realized. To investigate the performance limitations and the impact of ILV operation on the LCL filter hardware, a comprehensive optimization procedure for LCL filters and intercell transformers (ICTs) for two paralleled VSCs is presented in this paper. In addition, a comparative evaluation of HP and ILV operation of VSCs is carried out. The developed optimization procedure and the hardware benefits of ILV operation were verified through testing on a 260-kW full-scale system. Compared with the commercial state-of-the-art weight-optimized LCL filter for HP, the developed LCL filter for ILV utilizing an integrated ICT reduces the total filter weight by 30 while guaranteeing harmonic standard compliance and meeting thermal requirements.