This document discusses the design and simulation of a DSTATCOM (distributed static compensator) using a fuzzy logic controller. A DSTATCOM is a shunt-connected voltage source converter that can generate or absorb reactive power to improve power quality issues like voltage sags and swells. The document first provides background on power quality issues and the factors driving increased focus on power quality. It then describes the basic components and operating principle of a DSTATCOM for reactive power compensation and power factor correction. Finally, it discusses controlling strategies for DSTATCOM, including using a fuzzy logic supervisor to vary the gains of a PI controller and improve transient performance of the DC link voltage during load changes.