Abstract: This study addresses the transient studies of electrical networks with embedded, distribution static compensator (DSTATCOM) as example of Custom Power (CP) controllers. The transient analysis and modeling is performed with the state-of-the-art digital Simulator PSCAD/EMTDC.4.2. Simulations were carried out for both cases where, DSTATCOM was connected into the system and not, with simulation interval 0.8-1 sec. The aim of the DSTATCOM here to provide voltage regulation at the load point and mitigate the voltage sag generated when the load is increased.