The aim of this paper is to analyse the comparison between cascaded H-bridge and three phase three wire (3P2L) based distributed static compensator (DSTATCOM). The i cosθ control strategy is applied for the topologies for the power conditioning. The purpose of the comparative study is to select the suitability of particular topology for low voltage distribution system. The control strategy algorithm is formulated for the two configuration using mathematical formulations in MATLAB or Simulink. In comparison with the cascaded H-bridge, the 3P2L based distributed static compensator (DSTATCOM) exhibits more effectiveness in improvising the power factor correction, power quality improvement, voltage regulation, voltage stability, harmonics reduction in source current with respect to the disturbances caused due to different loading phenomena.