This paper proposes a new configuration for the Unified Power Quality Conditioner, which has a DC/DC converter with super-capacitors for energy storage. The proposed UPQC can compensate the reactive power, harmonic current, voltage sag and swell, voltage imbalance, and voltage interruption. The performance of the proposed system was analyzed through simulations with PSCAD/EMTDC software. The feasibility of system implementation is confirmed through experimental works with a prototype. The proposed UPQC has ultimate capability to improve the power quality at the point of installation on power distribution systems and industrial power systems.