This paper discusses the development of a laboratory prototype for a digital DSP-controlled 12-kVA Unified Power Quality Conditioner (UPQC) designed to mitigate both supply voltage and load current imperfections. It employs advanced control techniques, including a phase-locked loop-less grid synchronization method and a sequence-based compensation strategy to effectively address voltage sags and unbalances. The experimental results demonstrate the prototype's capability to perform in various conditions while highlighting the significance of digital control in power quality improvement.