The paper describes the design, development, and implementation issues of a digital signal processor-based -integrated hardware set-up for a distribution static compensator (DSTATCOM). A detailed documentation revealing all the design aspects of the important building blocks of the set-up is presented. The transducer, signal conditioning, synchronizing, blanking, protection, optoisolation, and power supply circuits are constructed and assembled to form a prototype laboratory model. In the present work, an H-bridge voltage source inverter-based DSTATCOM has been realized. The efficacy of this arrangement is demonstrated by conducting experiments and the results are discussed. © 2010 by the IETE.