In this paper, the authors present an implementation of three-phase Distribution STATic COMpensator (DSTATCOM) using ANN (Back-Propagation (BP) control algorithm) for its functions such as harmonics elimination, load balancing and reactive power compensation under nonlinear loads. A BP based control algorithm is used for extraction of fundamental weighted value of active and reactive power components of load currents which are required for estimation of reference source currents. The proposed system is verified by the results of MATLAB/Simulink.