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Major problems of power quality are the voltage sag and swell that the power system network is facing now-a days. This problems affects the functioning of the equipment. Therefore, this problem should be mitigated in order to maintain the efficiency of the power network. The use of custom power devices solves this problem. This paper presents the basic structure and working principle with different techniques of the DVR used to mitigate the voltage sag/swell. In this paper, the DVR is simulated in MATLAB/ SIMULINK for compensating voltage in transmission line during fault condition for maintaining constant voltage profile of the system.