This paper describes the control strategy for the static synchronous compensator (STATCOM) used in utility distribution systems is investigated, fuzzy-PI-based direct output-voltage (DOV) control strategy is presented. Based on power balancing principle, this DOV control strategy cannot only reduce the active and reactive current control loops of a conventional double-loop control strategy but also achieve to regulate dclink voltage and maintain the voltages at the point of common coupling (PCC). In order to effectively improve the immunity capability of this DOV control strategy to the uncertainties in system parameters, two fuzzy PI controllers are separately employed to maintain the voltages at the PCC and to simultaneously regulate dclink voltage. The mathematical model of conventional double loop control, Direct-Output-Voltage (DOV) control, Fuzzy-PI based control is studied. The control scheme for the above approaches is implemented using MATLAB Simulink platform. The simulation results of the models are presented and compared.