This document summarizes a research paper that proposes a power quality compensation system for distribution systems using a D-STATCOM. The system extracts reference signals for compensation of current harmonics and reactive power using instantaneous power theory. A recursive fuzzy PI controller is used to control the compensator current and improve tracking of reference signals. Simulation results show the system reduces current harmonics to within IEEE standards and regulates DC bus voltage. Compared to a conventional PI controller, the fuzzy PI controller provides faster dynamic response and tracking of reference signals through adaptive adjustment of control parameters based on phase rules.