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In distribution system, wind power plants are becoming popular renewable energy sources. It employs Doubly Fed Induction Generator (DFIG) to generate power based on wind conversion. Short and long transmission lines, presence of faults and presence of Static Synchronous Compensator (STATCOM) are highlighted issues in this paper. Basically, this research develops investigations on some electrical variables such as voltage and current to control them. Distribution Static Synchronous Compensator (DSTATCOM) is proposed in this paper. Wind farm acts as a source while DSTATCOM is connected to the distribution system with a DFIG based wind farm. The controller proposed is DSTATCOM is modeled and simulated in MATLAB/SIMULINK and the results are given. A microgrid based small signal analysis is performed in the laboratory using MATLAB and different comparisons are made and simulation case studies are presented and validated.