Increase of rectifiers for converting AC current to DC current can increase current harmonic in grids. These rectifiers can be Diode rectifiers or Thyristor based rectifiers used for variable speed drives or other applications. Then, a filter should be used to reduce these harmonic components. In this project, a Voltage Source Converter (VSC) is used as distributed static var compensation (D-STATCOM) to mitigate current harmonic produced by rectifiers. This Power quality issue is introduced, and its IEEE standard is discussed. Then its source and effect on grid is studied and simulation results are shown. Finally, a VSC D-STATCOM is used for mitigation of current harmonic in power systems.