In the modern generation, Electric Power has become one of the fundamental needs for humans to survive. This is due to the dependence of continuous availability of power. However, for electric power to be available to the society, it has to pass through a number of complex stages. Through each stage power quality problems are experienced on the grid. Under-voltages and over-voltages are the most common electric problems experienced on the grid, causing industries and business firms losses of Billions of dollars each year. Researchers from different regions are attracted by an idea that will overcome all the electrical issues experienced in the traditional grid using Artificial Intelligence (AI). The idea is said to provide electric power that is sustainable, economical, reliable and efficient to the society based on Evolutionary Algorithms (EAs). The idea is Smart Grid. The research focused on Power Quality Optimization in Smart Grid based on improved Differential Evolution (DE), with the objective functions to minimize voltage swells, counterbalance voltage sags and eliminate voltage surges or spikes, while maximizing the power quality. During Differential Evolution improvement research, elimination of stagnation, better and fast convergence speed were achieved based on modification of DE’s mutation schemes and parameter control selection. DE/Modi/2 and DE/Modi/3 modified mutation schemes proved to be the excellent improvement for DE algorithm by achieving excellent optimization results with regards to convergence speed and elimination of stagnation during simulations. The improved DE was used to optimize Power Quality in smart grid in combination with the reconfigured and modified Dynamic Voltage Restorer (DVR). Excellent convergence results of voltage swells and voltage sags minimization were achieved based on application of multi-objective parallel operation strategy during simulations. MATLAB was used to model the proposed solution and experimental simulations. / Electrical and Mining Engineering / M. Tech. (Electrical Engineering)