This review article presents an overview of the Static Synchronous Compensator (STATCOM) device, its working principle, and its application for improving the stability of wind farms. The article also highlights the importance of STATCOMs in enhancing the power quality of wind farms by improving voltage stability, reducing power fluctuations, and mitigating grid faults. Due to continuously fluctuating wind speeds and faults, the active power, reactive power, and terminal voltage are susceptible to continuous change, which applies to terminal voltage as well. When a STATCOM is connected to the grid, the active power, reactive power, and terminal voltage are maintained at the same level during the connection. This also contributes to an increase in the system's transient stability, which is an important consideration. The review further describes the modeling and control of STATCOMs, including the selection of appropriate control strategies for specific wind farm applications. Finally, the article concludes with a summary of the future research directions for the STATCOM device and its potential for integration into the smart grid.