This document presents a performance analysis of a DSTATCOM (Distribution Static Compensator) for mitigating harmonics in a distribution system connected to a non-linear load. A DSTATCOM is a shunt-connected active power filter that injects current to compensate for harmonic load current, making the source current sinusoidal. The proposed DSTATCOM design uses a voltage source converter controlled using synchronous reference frame control. Simulation results show the DSTATCOM significantly reduces voltage and current harmonics at both the source and load sides, improving power quality. It maintains unity power factor by making the source current in phase with the voltage.