In recent years the most perceptible topic for electrical engineering is power quality. Basically, Power quality is simply the interaction of electrical power with electrical equipment. If electrical equipment operates correctly and reliably without being damaged or stressed, we would say that the electrical power is of good quality. On the other hand, if the electrical equipment malfunctions, is unreliable, or is damaged during normal usage, we would suspect that the power quality is poor. Voltage sag is one of most severe problem among the power quality issue. Despite being a short duration (10ms to 1s) event during which a reduction in the RMS voltage magnitude takes place, a small reduction in the system voltage can cause serious consequences. Nonlinear loads are major source of voltage sag. A load is considered non-linear if its impedance changes with the applied voltage. The changing impedance means that the current drawn by the non-linear load will not be sinusoidal even when it is connected to a sinusoidal voltage. Most commonly non-linear loads can be primarily found in heavy industrial applications such as arc furnaces, large variable frequency drives (VFD), heavy rectifiers for electrolytic refining, etc. In this paper a dynamic voltage restorer (DVR) system is proposed to overcome from the problem of voltage sag. Dynamic Voltage Restorer is a series connected power electronics based device that can quickly mitigate the voltage sag in the system and restore the load voltage to the pre-fault value. This paper first gives an introduction to relevant power quality problems for a DVR and power electronics controllers for voltage sag mitigation. Thereafter the operation and elements in DVR is described. In this paper proposed utilizes the error signal to control the triggering of the switches of an inverter using Sinusoidal Pulse Width Modulation (SPWM) technique. Modeling and simulation of proposed DVR is implemented in MATLAB SIMULINK.