This document discusses replacing a conventional Dynamic Voltage Restorer (DVR) with a matrix converter to compensate for voltage sags. A DVR injects voltage to maintain the load voltage during disturbances. Conventional DVRs use bulky AC-DC-AC converters. The proposed model replaces this with a matrix converter to avoid energy storage and allow for higher power density. A matrix converter directly converts AC to AC using bi-directional switches. It can compensate for voltage sags and swells more efficiently than a conventional DVR without energy storage limitations. Simulation results show the DVR with matrix converter effectively regulates voltage during faults.