The main target of this research is to allow the DSTATCOM using 6-pulse inverter to participate effectively in mitigating voltage sags. The basic idea of the voltage sag reduction using a D-STATCOM, which is connected in shunt with the system, is to dynamically inject a reactive power into the utility grid. In this study, 6-pulse inverter operation is conducted using the sinusoidal PWM. The voltage magnitude as well as phase angle are taken as a base to convert the DC link voltage (Vdc) on the capacitor to a voltage source using the developed D- STATCOM. This method offers structural simplicity and less calculation complexity by using Power System Computer Aided Design (PSCAD) software. Simulation results indicate that this method is effective and D-STATCOM has good performance and capable of mitigating voltage sag as well as improving power quality of a distribution system. Static and dynamic loads are used to deem the effectiveness of the developed DSTATCOM.