Voltage disturbance is the most important power quality problem faced by many industrial customers [1]. Voltage disturbances include voltage sag, swell, spikes and harmonics. Harmonics are created by ‘switching loads’ or ‘nonlinear loads’. Each time the current is switched on and off, a current pulse is created. The resulting pulsed waveform is made of a spectrum of harmonic frequencies, including 50Hz fundamental and multiples of it. Voltage sag, which is a momentary decrease in RMS voltage magnitude in the range of 0.1 to 0.9 per unit caused by system faults, lightning and starting large induction motors. Due to insufficient energy, it can interrupt or lead to malfunction of electric equipment. This work presents the voltage sag problems faced by power distribution systems in general and then concentrates on analyzing an important and specific distribution system in particular. To model the system components and simulate the voltage sags by various types of faults, PSCAD/EMTDC and PSS/ADEPT software was used and the voltage severity was studied by introducing faults on selected nodes. There are several mitigation solutions available to reduce the severity of voltage sags. To meet the demand for more efficient mitigation solution, the Dynamic Voltage Restorer (DVR) was simulated and deployed. The simulation results showed that the voltage sags are mitigated satisfactorily. The results were analyzed and compared with the relevant standards for evaluating the quality of power in the distribution system. Actual physical sag measurements were also taken at the site and compared with simulated results.