This paper presents a comparison of two control algorithms used in controlling the DSTATCOM for reducing the harmonic distortions and tackling power quality issues. The paper focuses on Synchronous Reference Frame (SRF) controller and a deadbeat controller for DSTATCOM. The two controllers are simulated and tested for 1) nominal operations 2) voltage sag conditions and 3) THD analysis. The results are measured and compared between the conventional Synchronous Reference Frame based controller and deadbeat controller using MATLAB/SIMULINK. The THD analyses shows that there is a reduction of THD values from 37.13% (distribution system without DSTATCOM) to 2.06% (DSTATCOM with SRF controller) and 0.65% (DSTATCOM with deadbeat controller). The simulation results shows that the deadbeat controller is better than the SRF controller in tackling the power quality issues and in reducing the total harmonic distortion, thus improving the power quality.