This research deals with simulation and implementation of multilevel inverter based DVR. The DVR circuit produces high quality voltage since it uses a nine level inverter. This DVR gives better solution to the voltage sag problem by injecting a voltage with reduced harmonics. DVR controls the voltage applied to the load by injecting voltage of proper amplitude and phase angle. Thus DVR is responsible for restoring quality of voltage derived to the end user. The consumer can be isolated from transients and disturbances caused by sags by using DVR. Multilevel inverter based DVR is simulated, implemented and the results are presented.