The power quality problems can be defined as the difference between the quality of power supplied and the quality of power required. Recently a large interest has been focused on a power quality domain due to: disturbances caused by non-linear loads and Increase in number of electronic devices. Power quality measures the fitness of the electric power transmitted from generation to industrial, domestic and commercial consumers. At least 50% of power quality problems are of voltage quality type. Voltage sag is the serious power quality issues for the electric power industry and leads to the damage of sensitive equipments like, computers, programmable logic controller (PLC), adjustable speed drives (ADS). The prime goal of this paper is to investigate the performance of the Fuzzy Logic controller based DVR in reduction the power disturbances to restore the load voltage to the nominal value and reduce the THD to a permissible value which is 5% for the system less than 69Kv. The modeling and simulation of a power distribution system have been achieved using MATLABL/Simulink. Different faults conditions and power disturbances with linear and non-linear loads are created with the proposed system, which are initiated at a duration of 0.8sec and kept till 0.95sec.