Selective Harmonic Elimination PWM switching strategy has shown tremendous advantages in comparison with well-known SPWM strategy. But, its implementation on Distribution Static Var Compensator (DSTATCOM) is hard because of nonlinear nature of DSTATCOM and severe variation of DC capacitor voltage. In this paper, a controller based on PI controller is designed to overcome such problems. Thus, Modulation Index and phase angle of inverter are used as input control variables to regulate DC capacitor voltage and track reference reactive power. Simulations are worked out in MATLAB/Simulink environment.