In this paper, various voltage injection techniques for dynamic voltage restorers (DVRs) are analyzed with particular focus on a new method used to decrease the rating of the voltage source converter (VSC) used in DVR. A new control technique is proposed to control the capacitor-supported DVR. The control of a DVR is demonstrated with a reduced-rating Voltage Source Converter. The reference load voltage is predicted using the unit vectors. The synchronous reference frame theory is used for the conversion of voltages from rotating vectors to the stationary frame. The compensation of the voltage swell, sag and harmonics is demonstrated using a reduced-rating DVR. Thus the voltage profile also increased losses are also decreased.