This paper presents an advanced dynamic stability analysis of the IEEE 9-bus power system integrated with three synchronous Distributed Generation (DG) units. The primary objective is to enhance system performance by minimizing voltage fluctuations and reducing frequency deviations under dynamic and unbalanced load conditions. An Automatic Voltage Regulator (AVR) is implemented for each DG unit to dynamically regulate terminal voltage by adjusting the excitation system. This approach ensures voltage stability and improves the overall transient and steady-state response of the power network. The coordinated operation of the three DG units enhances system resilience by providing additional reactive power support and stabilizing frequency oscillations. MATLAB-based simulations validate the effectiveness of the proposed control strategy, demonstrating improved voltage regulation, reduced frequency deviation, and enhanced overall power system stability.