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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 the 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, the UPQC can either inject or absorb active power, enabling it to operate in modes of zero active power consumption, active power absorption, or active power delivery. During voltage swell and sag conditions, the series Active Power Filter (APF) component of the 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. Moreover, the shunt APF also compensates for reactive power demands of the load and mitigates harmonics generated by them. MATLAB/Simulink simulation results are provided to validate the analysis for different types of loads such as linear, non-linear sensitive loads, and EV charging stations.