In this paper, A Distribution Static Synchronous Compensator (D-STATCOM) is used for improving the power factor, power quality and to control power flow control in the distribution line. It used to give reactive and active power compensation in the distribution line. The power depends on the power factor of the loads connected to the transmission line. In this paper we have used a new DSTATCOM using modified SVPWM technique. The previous DSTATCOM are basically controlled by PWM, or SPWM technique which produce high harmonics distortion but using SVPWM technique distortion reduces to maximum possible level. In our system we also have examined the losses due to DSTATCOM when connected in the distribution system. To decrease the reactive power and to minimize the undesirable load to require maintains the flow of reactive power. As a result, the power a factor of the load descant, leading to the limitation of the active power flow in the line. The D-STATCOM is a power electronics based on advanced device can be used to control power flow in the distribution line. The construction of system is able to recover the drop-in bus voltage when any loading effect arises, but due to 5th harmonic performance of DSTATCOM reduces somewhere.