Abstract— Due to extensive use of automatic and power electronic based devices in an electric distribution system, power quality problems have substantially increased. The paper presents an effective solution to the said power quality problems via complete modeling; simulation and control of 3-phase 3-leg Distribution Static Compensator (DSTATCOM) is fed by PV module using different control algorithms. The DSTATCOM is a three wire/leg voltage source Converter (VSC) with a DC link capacitor. The PV module is used to regulate the DC link voltage. Power quality improvement is achieved in terms of power factor improvement, harmonic reduction and DC link voltage control. The performance evaluation of DSTATCOM in Unity Power Factor (UPF) and AC voltage control (ACVC) modes using different control theories is presented. The proposed power quality mitigation solution is demonstrated via simulation platform using MATLAB/Simulink software. The simulation results obtained in output waveforms of source voltage, source currents, load currents, DC voltage and point of common coupling (PCC) voltage justify the effectiveness of the proposed solution. The comparative performance is also presented of different controllers in terms of DC link voltage, PCC voltage and harmonic distortions.