Nowadays, most of the electrical loads are concerned about the power quality. Power quality problems include voltage sags/swell, transient interrupts and harmonic distortions in sinusoidal waveforms. Modern industrial devices are mostly based on electronic devices such as programmable logic controllers and electronic drives. These electronic devices are very sensitive to disturbances and become less tolerant to power quality problems such as voltage sags, swells and harmonics. Voltage dips are considered to be one of the most severe disturbances to the industrial equipment. In this paper, voltage sag/swell study is carried out for Myaungtagar industrial zone where the steel mills are the main loads. Due to furnaces and large motor drives, the voltage sag/swell is the common problems in this system. To mitigate these voltage sag/swell problems, the Dynamic Voltage Restorer (DVR) is introduced for this system. Dynamic Voltage Restorer (DVR) is a series connected power electronics based device that can quickly mitigate the voltage sag in the system and restore the load voltage to the nominal value. In this paper, modeling and analysis of Dynamic Voltage Restorer (DVR) is presented which will use for voltage sag/swell compensation. Modeling and simulations are carried out with Matlab/Simulink.