The causes of power quality problems are generally complex and difficult to detect. Technically speaking, the ideal AC line supply by the utility system should be a pure sine wave of fundamental frequency (50/60Hz).Different power quality problems, their characterization methods and possible causes are discussed above and which are responsible for the lack of quality power which affects the customer in many ways. We can therefore conclude that the lack of quality power can cause loss of production, damage of equipment or appliances or can even be detrimental to human health. It is therefore imperative that a high standard of power quality is maintained. This project demonstrates that the power electronic based power conditioning using custom power devices like DSTATCOM can be effectively utilized to improve the quality of power supplied to the customers. The aim of the project is to implement DSTATCOM with different control strategies in the MATLAB, simulink using Simpower systems tool box and to verify and compare the results through various case studies applying different loads and study them in detail.