Application of distributed wind energy conversion systems (WECS) in modern power systems and smart grids has significantly increased during the last decade. In particular, wind turbines equipped with doubly fed induction generator (DFIG) have dominated the market since 2004 as they represented about 55% of the worldwide total wind capacity during this year. This study investigates the application of superconducting magnetic energy storage (SMES) units to improve the dynamic performance of DFIG-based WECS during small and large disturbances in the grid side. A new control approach for the SMES unit using hysteresis current regulator and fuzzy logic is introduced. Detailed simulation results show that the proposed SMES controller is very effective in improving the dynamic performance of the WECS and is able to maintain its parameters within the safety margins of various grid codes during disturbance events considered in this study.