This paper describes the problem of voltage sags and swells and its severe impact on non linear loads or sensitive loads. The dynamic voltage restorer (DVR) has become popular as a cost effective solution for the protection of sensitive loads from voltage sags and swells. The power quality disturbances are voltage sag, swell, notch, spike and transients etc. The voltage sag and swell is very severe problem for an industrial customer which needs urgent attention for its compensation. The control of the compensation voltages in DVR based on. The proposed control scheme is simple to design. Simulation results carried out by MATLAB/SIMULINK verify the performance of the proposed method.