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Voltage sag is considered as one of the most common power quality problems. It may cause sensitive equipment to malfunction and process interruption. This paper presents the application of network reconfiguration and DSTATCOM to mitigate voltage sags in power distribution networks. The proposed method first reinforces the system voltage profile during voltage sag by network reconfiguration. Then DSTATCOMs are placed directly to partially mitigated nodes in order to obtain complete mitigation of voltage sag problem. The simulation results show that it is effective to incorporate network reconfiguration and DSTATCOM to overcome voltage sag problem in practical distribution systems.