The increasing penetration of distributed energy resources (DERs) into power systems has transformed the landscape of energy distribution, bringing both opportunities and significant challenges. This study examines the impact of DER integration on power system stability, focusing on voltage stability, frequency stability, and transient stability. A comprehensive review of 50 high-quality studies from peer-reviewed journals and reputable conference proceedings was conducted, utilizing advanced modeling, simulation, and empirical analysis methods. The findings reveal that the intermittent nature of renewable DERs, such as solar and wind, leads to voltage fluctuations, necessitating advanced control strategies to maintain stability. Additionally, the displacement of traditional synchronous generators by inverter-based DERs reduces system inertia, posing severe frequency stability challenges that require innovative solutions like synthetic inertia and fast frequency response mechanisms. Transient stability issues are also exacerbated by DER integration, highlighting the need for advanced inverter controls and enhanced fault ride-through capabilities. Energy storage systems (ESS) are identified as crucial for buffering the variability of renewable DERs, providing essential services such as frequency regulation and voltage support. However, high costs and scalability issues remain barriers to widespread ESS adoption. The study underscores the importance of supportive regulatory and policy frameworks in facilitating the seamless integration of DERs while maintaining grid stability. Effective policies that promote smart grid technologies and DER-friendly regulations are essential for ensuring a stable, resilient, and sustainable power grid. This research contributes to a deeper understanding of the complex dynamics introduced by DERs and offers insights into developing robust strategies to address stability challenges in modern power systems.