Power quality is one of major concerns in the present era. It has become important, especially with the introduction of sophisticated devices whose performance is very sensitive to the quality of power supply Power quality problem is an occurrence manifested as a non standard voltage ,current or frequency that result in a failure of end use equipments one of the major problem dealt here is the power sag, swell, transient, so we use DVR .but in this DVR we use the active filter .which help to reduced the harmonics which is generated by the VSC.