Voltage sag according to the IEEE standard is a momentary decrease (10% -90%) in the root mean square (rms) voltage magnitude where the duration is longer than half a cycle and less that one minute . The common causes of voltage sag are faults or short circuit in the system, starting of large loads and faulty wiring. Dynamic Voltage Restorer (DVR) is a custom power device that is used to compensate voltage sag. The DVR generally consists of voltage source converter (VSC), injection transformers, filters and energy storage (battery). The control strategy and the implementation of the control strategy using DSP board TMS320F2812 will be briefly discussed in the paper. Simulation results of the control strategy for voltage sag and swell will be presented. This paper will focus on the design and the commissioning of a 3kVa DVR lab prototype. Experimental results of a working DVR lab prototype will be presented.