The DSTATCOM(Distribution Static Synchronous Compensator) is one of the Custom Power Device that can regulate the voltage. DSTATCOM operated as a shunt connected static var compensator whose capacitive or inductive output current can be controlled independent of the system voltage. And the magnitude of compensated voltage is limited by characteristics of system and load. Compensation capability of DSTATCOM which can inject 1 MVAR reactive power was simulated by EMTDC under several condition. This paper analyzed effect of DSTATCOM’S compensation considering length and kind of distribution line, power factor and magnitude of load, duration and magnitude of voltage variation.