This paper introduces a new methodology called UPQC-S that utilizes a Unified Power Quality Conditioner (UPQC) with a fuzzy logic controller to enhance voltage quality, addressing issues such as voltage sags, harmonic distortions, and low power factors in distribution systems. The UPQC-S framework allows for simultaneous compensation of voltage variations and load reactive power sharing, validated through simulations. Key advantages include improved efficiency in inverter usage and reduced ratings for the shunt inverter due to collaborative power management.