In this research paper, a Thyristor controlled reactor supported inductively coupled hybrid distributed static compensator (ICH-DSTATCOM) for three-phase three-wire (3P3W) distribution system (DS) is planned. The hybrid distributed static compensator (H-DSTATCOM) is a hot topic among scientists studying power quality (PQ) problems. The majority of published papers, however, avoid discussing H-DSTATCOM design. This paper proposes a design of a distributed static compensator (DSTATCOM) utilised to compensate for an uncontrolled rectifier load jointed to a 3P3W network. The filtering mechanism is performed by inductively coupled voltage source converter using the deep learning approach. The Thyristor controlled reactor (TCR) is incorporated in series with compensator inductance. The detailed design of TCR for the elimination of error caused by the system unbalance is discussed by using the mathematical equations. The MATLAB/ Simulation outcomes show that enhanced potential control & balancing, harmonic mitigation, and good power factor (pf) with the proposed topology as per the guidelines imposed by IEEE-519-2017.