Power quality issues have recently become a source of major concern due to the large increase in load demand and the addition of various sources of disturbance at the distribution level. Power quality mainly refers to voltage quality. Sudden load variations can lead to a fall in the line voltage magnitude, creating what is called a voltage sag. Many solutions have been proposed and implemented for voltage sag compensation. Power electronics-based solutions such as grid-connected converters and AC/DC schemes are considered basic units for transient voltage fault ride-through capability. This paper describes a multifunctional intelligent bidirectional electrical vehicle (EV) charger that is able to charge the EV battery at different power ratings in addition to voltage sag compensation. The performance of the proposed system is verified and validated through MATLAB/Simulink simulations (R2020A). The proposed solution can effectively meet three main requirements: charging the EV battery at different power ratings, detecting the voltage sag event, and providing the required active and reactive power compensation for voltage sag compensation.