In recent years, non-linear loads on the distribution side are increasing rapidly. Notably, the electric arc furnace (EAF) is the most used non-linear load due to its diverse applications for industrial needs. However, EAF has some disadvantages like uneven distribution of heat inside the furnace, release of unwanted gases, increased level of harmonics, and Flickers in voltages. Specifically, power quality concerns are more and need comprehensive solutions. In this work, a matrix converter (MC) along with static VAR compensator (SVC) is proposed, and the hybrid exponential-hyperbolic furnace model is adapted in MATLAB platform. Simulations are carried out for different cases and the observed results are compared with existing methodologies. It was perceived that the power quality parameters such as peak current and voltages, total harmonic distortions (THDs), voltage flickers, and power factors are enhanced compared with existing methodologies. Precisely, the THD of current and voltage attains a prime rate of about 2.85% and 29.54%, respectively. Moreover, the proposed model’s voltage flicker and power factor offer a grander scale of about 1.26% and 0.9975, respectively. The enhanced scheme provides more significant advantages to the large-scale steel manufacturing plant with EAF.