Discrepancies with generation and transmission infrastructure have led to severe and increasing strain in recent years in power system. A few of the important factors, include issue concerning environment, variations in the energy portfolio and deregulated energy markets. The concern for voltage instability has increased because of the stress that has been developed in the system. Amid the most recent twenty years there has been one or more expansive voltage collapse every year, the reason being more number of interconnections, maximum utilization, and load characteristics. Two instances are an extensive utilization of air conditioners and electrical heating appliances. The definite capacity limits of generation and transmission units should not be surpassed in a healthy power system. When the system is loaded heavily, Voltage stability issue occurs. The Voltage instability state occurs in a power system mainly because of increase in load demand power which in turn causes disturbances. The work done in the investigation of the power quality problems at the distribution end is very much less compared to the transmission side. The electrical disturbance leads to network failure which affects the power distribution system. In this system where consumers are the end users, face various power relevant issues like voltage fluctuations, short circuits, overheating of electronic gadgets, etc. Thus the complete reliability of the system is dependent solely on the power quality supplied. The objective of the proposed work is to meet the consumer demand by using custom power devices like Distribution Static Compensator (DSTATCOM) and Dynamic Voltage Restorer (DVR) which helps in enhancing the quality of power so as to increase the reliability of the system.