As the issue of global warming is worsening, the shift towards using renewable energy resources is becoming more of an obligation rather than an option. With the continual decline in the cost of distributed small and medium-scale renewables and government sponsored programs, the outlook of growth of these converter-based resources remain high. Renewable energy resources are connected at the end-user terminals, in close proximity to the load at the distribution network. Such connection in the locale brings perceived benefits of transmission loss reduction, increased energy efficiency and improved voltage regulation. Yet, distributed renewable generation have noticeable effects on system’s power quality. This paper investigates the impacts of distributed wind generation on the voltage sag of distribution systems. A systematic approach is constructed to capture voltage sag occurrence incidents, due to wind generation connected at distribution nodes, and trigger the dynamic voltage restorer (DVR) into active operation mode to rectify the voltage sag problem. A test feeder system is represented using MATLAB/Simulink with wind turbines connected at several nodes of the system. A model for the DVR is developed in Simulink. It was then integrated with the test feeder system. Simulation results show that the incorporation of increased proportions of wind generation into the distribution network may give rise to negative operating conflicts as far as the voltage sag is concerned. Results manifest that the DVR is capable of effective correction of the voltage sag, caused by a three phase short-circuit fault, in presence of high penetration levels of variable wind generation connected at disparate locations in the distribution network.