This paper deals with the Major Power Quality problems like Voltage Flicker (VF) that occurs in a Power Industry. Industrial Arc Furnace (IAF) is the vital source for producing VF. It creates most significant Disturbance in electrical power systems dominantly in Distribution systems. The fast response of Custom Power device makes it a better solution for improving Power Quality in Distribution systems against the Non-linear loads like IAF. Due to the fastest growth in Semi-Conductors Industry and modern Techniques for development of Voltage Source Converters (VSC), FACTS Devices are used for Voltage Flicker Mitigation. The Voltage Flicker Compensation is done in 3 stages and analyzes the related results. Initially the Voltage Flicker mitigation using FCTCR (Fixed Capacitor Thyristor Controlled Reactor) was simulated. Secondly, the compensation for the Static Synchronous Compensator (STATCOM) has been performed. This paper presents a Instantaneous Reactive Power Controller technique for 6-pulse STATCOM to effectively compensate voltage flicker due to electric arc furnace load. In these cases, some major harmonic components are presented in the system, which can be minimized by using 12-pulse STATCOM. The obtained results show that STATCOM is an efficient solution for the Voltage Flicker Compensation. All the Simulations are done in the MATLAB Software.