Today most of the industries and customers are using sensitive and sophisticated electrical equipment based on semiconductor devices, these may causes power quality disturbance. The major problems are voltage sag and swell. The sag and swell not only occur by disturbed power quality but also due to high system tapping at point of common coupling. To overcome this problem and to improve power quality the distribution companies uses various custom power devices. Among the various custom power devices Dynamic voltage restorer is used for compensation in this paper, which is most popular and widely used method. Here, In phase compensation technique of DVR is used with battery energy storage system. The voltage at PCC have been observed. The control technique employed here is SRF theory with PI controller. The overall work is carried out in MATLAB Simulink.