The power quality concerns are augmenting day by day due to the growth of loading requirements. In this paper, we address these concerns while trying to provide the solutions. With the advancement of technology, the power quality concerns can be handled efficiently by flexible alternating current transmission system (FACTS) devices such as distribution static shunt synchronous compensator (D-STATCOM), static volt-ampere reactive compensator (SVC), static synchronous series compensator (SSSC), thyristor-controlled series compensator (TCSC), unified power flow controller (UPFC), etc. This paper presents the solutions for power quality issues related to Mizoram with the help of D-STATCOM. D-STATCOM enhances the power quality by varying the various parameters of the system and make the system more flexible. We propose a MATLAB Simulink model of D-STATCOM which demonstrates the control of active and reactive power and hence maintains the voltage profile. In Mizoram, during peak hours Undervoltage is a frequent phenomenon which causes damage to various domestic appliances as well as it significantly affects the electrical equipment of small industries. By incorporating D-STATCOM in the existing system at the distribution level we can greatly improve the voltage profile of distribution system, which not only provide better power quality but also increase the lifespan of domestic as well as small industrial equipment, by this proposed modification in existing system the revenue of distribution, as well as customer satisfaction, can be improved.