Power quality became very important for utilities as well as users. The cause of the power quality problem is instability (voltage, current, and frequency). Voltage sag and voltage swell are common voltage disruptions. They are caused by faults, disturbances arising in the transmission system, etc. This paper deals with the voltage instability compensation of linear sensitive loads by dynamic voltage restorer (DVR) using instantaneous power theory. The practical experiment results were obtained using the data acquisition card (DAQ) and LabView real-time software. The new design can compensate the voltage for ±15% of the nominal value for the two conditions sag/swell. Also, the designed controller enhanced the response of less than 110% overshot at stalling time of less than 0.2 sec.