Power quality plays a major role in power system at all the levels of power sector. The problems such as sag, swell, transients occur mainly due to the usage of sensitive and critical loads. Most of the disturbance occur in power system is voltage sag on the distribution side. To compensate the voltage sag, the effective and the efficient custom power device used is DVR (Dynamic Voltage Restorer). In this paper, a different control technique is used for compensating voltage sag. Control strategy used here is Synchronous Reference Frame theory (SRF) to compensate the voltage on the load side even though there is a change in the source side.