This paper describes the comparative analysis of the steady state behavior of two different control techniques of distributed flexible AC transmission system (DFACTS) controller called as distributed static synchronous compensator (DSTATCOM), aimed at power quality (PQ) enhancement in terms of voltage swell mitigation in a three-phase four-wire (3p4w) distribution system. A DSTATCOM is one of the major power quality improvement devices which consist of a DC energy source, a voltage source inverter (VSI), a filter, a coupling transformer and the control system. The control strategy based on synchronous reference frame (SRF) theory and propositional-integral (PI) controller has been used for reference current generation of voltage source inverter (VSI) based DSTATCOM. The SRF and PI control based DSTATCOM is validated through dynamic simulation in a MATLAB\SIMULINK environment under linear as well as nonlinear loads.