Power quality has become an important factor in power systems, for consumer and household appliances with proliferation of various electric/ electronic equipment and computer systems. The main causes of a poor power quality are harmonic currents, poor power factor, supply voltage variations, etc. In recent years the demand for the quality of electric power has been increased rapidly. Power quality problems have received a great attention nowadays because of their impacts on both utilities and customers. Voltage sag, swell, momentary interruption, under voltages, over voltages, noise and harmonics are the most common power quality disturbances. This paper proposes a new connection for a unified power quality conditioner (UPQC) to improve the power quality of two feeders in a distribution system. This paper illustrates how UPQC can improve the power quality by mitigating all these PQ disturbances. The proposed configuration of the UPQC is developed and verified for various Power Quality disturbances by simulating the model using PSCAD/EMTDC. The disturbances considered here are according to IEC Electromagnetic Compatibility Standards.