The electronic equipments are extremely sensitive to variation in electric supply. The increasing of a nonlinear system with several interconnected unpredicted and non-linear loads are causing some problems to the power system. The major problem facing the power system is power quality, controlling of reactive power and voltage drop. A static synchronous compensator (STATCOM) is an important device commonly used for compensation purposes, it can provide reactive support to a bus to compensate voltage level. In this paper, the Artificial Neural Network (ANN) controlled STATCOM has been designed to replace the conventional PI controller to enhance the STATCOM performance. The ANN controller is proposed due to its simple structure, adaptability, robustness, considering the power grid non linearities. The ANN is trained offline using data from the PI controller. The performance of STATCOM with case of Load increasing and three-phase faults case was analyzed using MATLAB/Simulink software on the IEEE 14-bus system. The comprehensive result of the PI and ANN controllers has demonstrated the effectiveness of the proposed ANN controller in enhancing the STATCOM performance for Voltage profile at different operating conditions. Furthermore, it has produced better results than the conventional PI controller.