Industries driven by electric power require controlled and improved power quality for the optimal exploitation of resources. However, certain crucial issues greatly influence power quality, causing monetary losses to both the utility and customers. Numerous custom power devices are available to compensate for power quality issues; however, these devices alter the parameters of the transmission and distribution systems. Hence, a dynamic voltage restorer (DVR) is adopted in this study, which mitigates voltage disorders by establishing the desired quality and voltage level demanded by any sensitive load. The DVR adopts a 3ϕ four-switch voltage-source inverter (VSI) that acts as a cost-effective solution with a reduced number of switches. The cuckoo search algorithm (CSA) was utilized in this study as it solves multiple optimization issues with ease of implementation. Because it is robust to variations in the system, it significantly aids in enhancing the efficiency of the DVR by compensating for the variations in voltage and minimizing the total harmonic distortion (THD). The entire work was verified in MATLAB/Simulink to demonstrate the effectiveness of the introduced technique in smoothing the distorted voltage. The proposed approach achieved an efficiency of 92.6%witha simulation THD of 2.8% and hardware THD of 2.95%.INDEX TERMS DVR, CSA, Power quality, voltage swell, injection transformer, voltage sag.