In recent times, regional renewable energy sources (RES) are increasingly integrated with the existing electric power grid by onboarding certain superior power quality features, thereby helping them in meeting massive electrical demand. This grid integration drastically reduces the use of fossil fuels, besides preventing environmental hazards as well. However, in grid‐connected systems, with RES such as photovoltaic (PV) systems and wind energy systems, many power quality issues (PQ) still crop up. In this paper, Gray Wolf Optimization (GWO), in conjunction with a static synchronous compensator (STATCOM) is suggested to address such challenges in the RES integrated grid‐connected PV systems. The intermittent nature of solar PV power under shading conditions can be harnessed by using the GWO approach. STATCOM is one of many specialized power electronic devices that effectively reduce power quality concerns such as voltage sag/swell and Total Harmonic Distortions. The fast‐acting PI controller is intended to drive a STATCOM by using some tuned parameters for maintaining the DC link voltage as constant. The best findings are attained after these results are compared with PI. The test system is modeled using the MATLAB/Simulink environment.