The study of shunt connected FACTS devices is a connected field with the problem of positive and negative voltage compensation and better mitigation of instability problems in today’s world. In this project, the shunt operation of FACTS controller is studied, the STATCOM, and how it helps in the better utilization of a network operating under normal conditions. First literature review of many papers related to FACTS and STATCOM is carried out, along with positive and negative voltage compensation. The study of STATCOM and its principles of operation and control, including phase angle control and PWM techniques, are carried out. The study of shunt connected devices is a shunt connected field positive and negative sequence voltage compensation and better mitigation of transmission related world. Statcom is a FACTS device whose capacitive or inductive current can be controlled independent of system ac voltage. Whenever an asymmetrical fault occurs in a system, power loss and voltage instability can occur in that system. So to increase the life time of generator drives and to reduce that voltage instability, Statcom can be used. Statcom can compensate positive sequence voltage for improving voltage stability and for reducing torque ripples negative sequence voltage has to be compensated. Statcom can perform co-ordinated action regarding positive and negative voltage compensation. In this thesis, review of positive and negative voltage compensation and results for positive sequence voltage compensation and negative voltage compensation using MATLAB simulation is shown.