JPS_V4_N3_RP1 Akhib Khan Bahamani Sreerama Reddy G.M. V. Ganesh Journal on Power Systems Engineering 2322–0376 4 3 1 11 Flexible AC Transmission System, Distributed Power Flow Controller, Multilevel Inverter, Voltage Sag Mitigation, Power Quality Improvement, Total Harmonic Distortion In recent times, Distributed Power Flow Controller is an important device within the family of FACTS Devices. This paper investigates Multi Level Inverter (MLI) based Distributed Power Flow Controller (DPFC) system for voltage sag mitigation and harmonic reduction. The DPFC employs a Shunt based Static Compensator (STATCOM) and multiple series converters to improve the power quality. DPFC was placed at the correct location in the power transmission system to gain advantages like improved voltage profile and reduced power loss. Circuit models are developed for Eight bus system with and without DPFC. The MATLAB/SIMULINK results obtained shows an improved performance in voltage sag mitigation, voltage quality of load busses, power quality improvement, comparison of the bus voltages with and without DPFC and reduction in load voltage harmonics. The results indicate that MLI based DPFC has improved in power quality and reduction in total harmonic reduction. August - October 2016 Copyright © 2016 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=8267