This paper introduced the Power quality improvement of sensitive loads with solar energy based grid system. In this paper, the solar system is integrated with power system which is compensated by using dynamic voltage restorer (DVR) which is designed to mitigate the voltage sag and voltage compensation is accomplished by using battery energy system. The DC link voltage of the proposed system is maintained by the boost converter that enhances the input supply from the solar system. The voltage source inverter (VSI) is used to compensate the power quality issues and an intelligent control based Cascaded Fuzzy logic control is implemented to control the VSI. The performance of the proposed DVR system exhibits excellent compensation of voltage issues under grid connection such as sags, swells, and oscillations. The simulation results support the theoretical analysis and show voltage sag compensation of the proposed system and total harmonic reduction. The proposed system results are obtained and verified using MATLAB/Simulink. © 2022 Elsevier B.V., All rights reserved.