In order to improve power quality in distribution networks, the research suggests a comparative analysis of two compensators (Distributed Generator (DG) and capacitor) (CSA). For the purpose of enhancing power quality, DG and capacitor are assigned in radial distribution networks.Based on the results obtained DG has about reduced the losses (86.17kW) then capacitor (135.74 kW) power quality improvement. DG gives better power quality improvement (86.17) than capacitor (135.74).