This research work explains the integration of power electronics based device for reactive power compensation, known as distribution static compensator (DSTATCOM). It is being utilised commonly in modern power distribution systems to mitigate the Power quality (PQ) associate problems. This paper examined the capability and performance of an inductor coupled T-type VSI (ICTV) based DSTATCOM. The designed topology is combination of inductor in series with the T-type inverter which is demonstrated as a power conditioner for three phase three wire (3P3W) distribution network. ICTV has unique features like improved power factor, better voltage regulation, lower total harmonic distortion THD, lower component rating and constant DC current from the source. ICTV, compared to the traditional two-level VSI, highlights some useful compensation, like THD reduction and reliability during the entire operation. Simulation study is analyzed using sim power tool box of MATLAB/Simulink software to verify the characteristics and compensation performance of both the varieties of the DSTATCOM using the icos Θ control technique.