DSTATCOM is used for recompense of reactive power and disturb caused by different loads in distribution system.To develop a DSTATCOM with battery energy source system and control of energy flow among the system components. Multilevel inverter is used in DSTATCOM for mitigating voltage sag at the load side. Hybrid multilevel inverter with fuzzy logic and minimised switches is presented. Voltage sags are generated by faults in the distribution feeder, with the three-phase 7-level hybrid multi level inverter for mitigating the voltage disturbances. Seven level hybrid inverter which is used for low energy PV source and high power grid connected applications by applying VMC converter. DCDC converters based on the tri-state switching unit and voltage multiplier cells. VMC converter having ability to maintain current and voltage of input source and it gets maximum level for grid applications. Improving the efficiency, by harmonic reduction in the power system and fast load compensation achieved by the combination of voltage multiplier cells and seven level multilevel inverter circuits with fuzzy control techniques. Then, computer simulation by means of the programMatlab/Simulink preliminarily verifies the usefulness of the proposed device.