In this research, Elman least mean square (ELMS) based inductively coupled distributed static compensator (IC-DSTATCOM) is studied. The implementation procedure is presented in two sections. First, the source, load and filter current are determined by utilizing the inductive filtering transformer (IFT) on the basis of impedance matching principle, second, the six ELMS subnet structures are employed for both direct and quadrature components of three phase to improve the dynamic response. The comparative performances between IC-DSTATCOM and direct coupled distributed static compensator (DC-DSTATCOM) are demonstrated at various dynamic scenarios such as source current harmonic reduction, power factor (PF) improvement, voltage regulation, voltage balancing as well as controlled DC link voltage. A 10 kVA, 230 V, 50 Hz prototype IC-DSTATCOM and DC-DSTATCOM are built to verify the experimental results as per the prescribed guidelines.