Currently, the installation of FACTS (Flexible Alternative Current Transmission System) devices such as synchronous static compensators (STATCOM) represent a very useful solution to improve both network stability and power quality. The effectiveness of these devices is principally determined by the used static converter (topology and the switching strategy) and the adopted dynamic law characterizing the controller structure. This paper illustrates the stacked five-level, multi-cell STATCOM compensator performances governed by a Backstepping controller technique compared to the use of the conventional PI controller (SPWM) for controlling voltage variation (sags or overshoots) affecting a given network point. The interest in using stacked multi-cell converters topology is to increase the number of voltage levels in order to ensure a good quality voltage waveform at the specified connection point. Therefore, the proposed backstepping controller based on the use of Lyapunov control functions presents a simplified structure and a reduced computational load compared to many others advanced control approaches. The proposed system is verified by running a simulation analysis with Matlab Simulink environment. The simulation results obtained show that the proposed STATCOM configuration ensures good voltage regulation at the common connection point (PCC), correction of the unity power factor on the grid side and good response time via reactive power compensation under variable load conditions.