This document discusses using a STATCOM (Static Synchronous Compensator) to improve power quality in a distribution power system. It first describes the system being modeled in MATLAB/SIMULINK, including the grid, transmission line, and R-L load parameters. Simulation results showing voltage, current, power factor, and real/reactive power are provided for the uncompensated system. A STATCOM is then added to the model. Simulation results with the STATCOM show improved power quality as indicated by the voltage and current waves becoming in phase, power factor increasing to near unity, and greater real power able to be delivered to the load. The STATCOM effectively provides reactive power compensation to improve system performance.