This paper proposed an efficient Quasi Z-source inverter (QZSI) based distributed static compensator (DSTATCOM) with reduced DC-link voltage and filter size. The boosting capability and shoot-through solution of the QZSI make it an excellent power solution for various applications including a 3-phase power utility network (PUN). Here, the QZSI is supported by a self-supported capacitor. In the proposed QZSI, the rating of DC link voltage is reduced over the voltage source inverter (VSI) and the current supplied by QZSI is reduced, which reduces the filter size of the compensator. The above inherent merit reduces the energy loss and also the downtime cost. Also, the projected scheme is considered to improve the power quality (PQ), power factor (p.f) enhancement, better reliability, stress reduction, decrease in total harmonic distortion (THD), voltage balancing, voltage regulation and source current shaping of PUN. This research study presents the simulation results and characteristic comparison between QZSI and VSI-based DSTATCOM. The Adaptive Least Mean Square (ALMS) control algorithm is used to generate the switching signals for the DSTATCOM. The effectiveness of the QZSI is analyzed by simulation studies using MATLAB/Simulink software.