Control strategies of D-STATCOM for unbalanced load compensation under internal and external disturbances were discussed. Linear control strategies do not have a satisfactory dynamic performance and become invalid under internal or external disturbances. To guarantee a good precision and robustness, a control strategy combining input-output feedback linearization technique with integral sliding mode control (ISMC) method was applied to D-STATCOM for unbalanced load compensation. The strategy has features of simple structure and is easy to implement. A 10 MVar/10 kV D-STATCOM simulation system was built in PSCAD/EMTDC to verify the effectiveness and robustness of the control strategy proposed. Simulation results show that the control strategy can compensate reactive power and eliminate unbalance simultaneously under various disturbances.