In this paper, different Distribution Static Compensators (DSTATCOMs) topologies, state of the art, their performance, design considerations, future developments, and potential applications are investigated for power quality improvement. These DSTATCOMs for three-phase three-wire systems and three-phase four-wire systems are developed and installed in the distribution system for many functions, such as reactive power compensation, harmonics elimination, load balancing, and neutral current compensation. This paper is aimed to explore a broad perspective on DSTATCOMs to researchers, engineers, and the community dealing with the power quality improvement. A classified list of some latest research publications is also provided for quick reference.