Distributed generation (DG) has received much attention recently due to environmental consciousness and rising of the energy efficiency. However, DG interconnecting to low-voltage distribution system may cause voltage variation, and a lot of single-phase DG or single-phase load may result in voltage unbalance. This thesis presents a distributed-STATCOM (D-STATCOM) to alleviate variation of both positive-sequence and negative-sequence voltages at the fundamental frequency. The D-STATCOM operates as susceptance and conductance at the fundamental positive-and negative-sequence frequency, respectively. The susceptance and conductance commands are dynamically tuned according to voltage fluctuation at the installation location. Therefore, the positive-sequence voltage can be restored to the nominal value as well as the negative-sequence voltage can be suppressed to an allowable level. Computer simulations and experimental results verify the effectiveness of the proposed control strategy.