This study presents an analysis of the application of DSTATCOM (Distribution Static Synchronous Compensator) for the purpose of compensating reactive power and mitigating harmonics in distribution systems. The utilization of a distribution static compensator (DSTATCOM) has demonstrated its effectiveness as a feasible remedy for addressing power quality issues. With the continuous increase in power demand, there is a growing concern regarding power quality issues, specifically the loss in reactive power and the induction of harmonics, which are directly associated with the rise in non-linear loads. The issue pertaining to the distribution system is resolved by the utilization of DSTATCOM. The implementation of DSTATCOM enables the mitigation of power quality concerns. The utilization of Id – Iq control theory is a straightforward approach that may effectively manage the Distributed Static Compensator (DSTACOM) system, addressing reactive power concerns and mitigating harmonic distortions. The conventional Id - Iq theory is characterized by significant switching losses resulting from the presence of high-frequency harmonic currents as a reference.