Power quality is an extensive term to describe the effectiveness and its performances. The main task of power system is to provide their customer a continuity power supply forever, because the whole power system is a big network which includes different types of loads. At the instant of common coupling, connected sensitive loads in which voltage distortion in supply side or load side is highly repellent. Voltage dip is the most frequently arising power quality issue mainly occuring in distribution system due to faults, connecting nonlinear loads, since it is a main disturbance for domestic and industrial equipment. In this paper to diminish the voltage drop, fuzzy logic controller based dynamic voltage restorer is used in three-phase parallel distribution system. The Fuzzy logic controller is used to manage the DVR output. The performance evolution and result is simulated using MATLAB/SIMULINK. The Fuzzy control rule is optimized using Gaussian membership function by applying if-then rule.