The paper presents a multifunctional dynamic voltage restorer (DVR) and a closed loop control using posicast and p+resonant controllers to enhance transient response and eliminate steady-state errors. It addresses disturbances in load voltage caused by induction motor starts and short circuit faults, demonstrating that the DVR can limit downstream fault current while protecting itself and restoring the point of common coupling (PCC) voltage. Simulation results in MATLAB/Simulink confirm the effectiveness of the proposed control scheme in maintaining voltage quality during power distribution challenges.