This document presents a study on using a Distribution Static Compensator (DSTATCOM) to improve power quality issues like voltage sags and swells. It begins with an introduction to power quality problems such as voltage sags, swells, harmonics and transients. It then discusses different custom power devices that can be used as solutions, focusing on DSTATCOM. The document presents the configuration, modelling and control of a DSTATCOM. It proposes a control scheme for DSTATCOM and presents simulation results demonstrating its ability to regulate voltage during sags and improve power factor. The conclusion states that the proposed DSTATCOM scheme can effectively mitigate various power quality issues related to voltage and current.