As we aware that electrical energy is now became a part of our life as the dependency on the electrical energy has been increased greatly. Everybody is using electrical energy in their day- to-day life, which needs to think about the quality and continuity aspects of electrical energy. The quality of power supplied is affected by variation in the supply and the presence of nonlinear loads. In this project, we are discussing about power quality problems- voltage variation, harmonics & purpose of methods to overcome these problems. There are many methods to overcome these problems. Among them the use of FACT devices is an efficient one. This project presents an overview of the FACT devices like- DVR, DSTATCOM. And also the control strategies to control these devices are presented in this project. The proposed control strategies are simulated in MATLAB SIMULINK environment and the results are presented.