Now-a-days due to the drastically increased in use of nonlinear loads causes many power quality problems in power system network. Those problems are classified as reactive power problems, harmonics, voltage sags and swells. Out of these problems, harmonic problems are a major concern. Custom power devices proposed for mitigation of power quality in network. For compensation of harmonic, static compensator (STATCOM) is used. The paper presents the compensation of harmonic power quality issues using STATCOM for the system with singly-excited induction generator feeding single-phase load and three-phase loads. Proposed concept was developed using MATLAB/SIMULINK software and the results were presented to the system with STATCOM feeding single-phase load and three-phase loads.