This paper presents a conceptual study of the Unified Power Quality Conditioner (UPQC) in mitigating voltage swell and sag occurrences on power distribution networks. A distinctive feature of UPQC is its capability to inject voltage within a range of 0° to 360° relative to the utility or Point of Common Coupling (PCC) voltage phase angle. Leveraging this capability, UPQC can either inject or absorb active power, enabling operation in modes of zero active power consumption, active power absorption, or active power delivery. Specifically, during voltage swell and sag conditions, the series Active Power Filter (APF) component of UPQC operates in active power delivery and absorption modes, respectively. Simultaneously, the shunt APF component aids the series APF by stabilizing the DC link voltage at a constant level. The shunt APF also compensates for the load's reactive power demands and reduces harmonics generated by it. MATLAB/Simulink simulation results validate the analysis for different types of loads, such as linear, non-linear, sensitive, and EV charging stations.