Z-Source inverters have been proposed as an alternative power conversion concept as they have both voltage buck and boost capabilities. These inverters use a unique impedance network to couple the converter main circuit to the power source, to provide both the voltage buck and boost properties which cannot be achieved with conventional voltage-source and current-source inverters. To understand the various features of Z-source inverter, this paper initially presents a brief review of Z-source highlighting its filtering capabilities. Because of the various advantages of Z-source topology, it is examined along with Unified Power Flow Controller (UPFC) through simulation studies for steady state and dynamic condition. The simulation results indicate that Z-source converter (ZSC) can be a good alternative to Voltage Source Converters (VSC). Further investigations are being carried out to assess both its superiority and suitability for UPFC applications.