The demand on electrical power quality is ever increasing along with the growing technological advancement. Voltage sag is the most frequently happening problem on power system and might cause great economic loss. To solve this problem, Dynamic Voltage Restorer (DVR) is the most efficient and economic device at present. Offers high-quality power is also a mark of national industrial, technological level and progress of social civilization. Therefore, it is a subject need to be solved In view of the needs of both theoretical and practical aspects. This paper based on the basic theory of DVR and the voltage sag detection algorithm and control compensation strategies, and then takes TMS320F2812 of TI Corporation as signal processer; we have a overall design of the dynamic voltage restorer. The operating experience and practice indicated: the Dynamic Voltage Restorer system has the merits, such as, the design and operation of a fast response, stable and reliable and low maintenance cost.