This Power quality is one of the major concerns in the present power system environment. The situations like, voltage dip/sag, swells, harmonic content, etc. and their major effects on greatly susceptible loads are well known. To tackle these situations, custom power equipment are utilized. In this work, Proportional Integral (PI) control technique based Dynamic Voltage Restorer (DVR) is implemented in power distribution system to suppress voltage sag and swell under linear and non-linear load conditions.In conventional method, DVR is proposed to mitigate the voltage sag. But, presence of voltage swell may cause variation in output. In the proposed system, DVR with PI control technique is implemented which compensates both sag and swell. Using the program MATLAB 2014a, the design of the Superconducting Magnetic Energy Storage (SMES) module as a dc voltage source for minimizing voltage sag and improving the power efficiency of a DVR-based distribution system was presented. The simulation results show that the SMES-based DVR easily compensates both sag and swell and provides excellent voltage control in balanced and unbalanced situations.