Background: In modern electrical power distribution systems, Power Quality has become an important concern due to the escalating use of automatic, microprocessor and microcontroller based end user applications. Methods: In this paper, power quality improvement has done using Photovoltaic based Distribution Static Compensator (PV-DSTATCOM). Complete simulation modelling and control of Photovoltaic based Distribution Static Compensator have been provided in the presented paper. In this configuration, DSTATCOM is fed by solar photovoltaic array and PV module is also helpful to maintain the DC link voltage. The switching of PV-STATCOM is controlled by Unit template based control theory. Results: The performance of PV-DSTATCOM has been evaluated for Unity Power Factor (UPF) and AC Voltage Control (ACVC) modes. Here, for studying the power quality issues three-phase distribution system is considered and results have been verified through simulation based on MATLAB software. Conclusion: Different power quality issues and their improvement are studied and presented here for harmonic reduction, DC voltage regulation and power factor correction. © 2020 Bentham Science Publishers.