This paper analyses magnetic flux saturation of matching transformer considering characteristic of dynamic voltage restorer(DVR) system to solve voltage sags which are considered the dominant disturbances affecting power quality. This DVR consist of PWM inverter to inject arbitrary voltage, LC low pass filter and matching transformer for isolation and grid connection. However, the matching transformer has an excess of inrush current by magnetic flux saturation in the core of transformer. Due to this inrush current, the rating of matching transformers is double for needed nominal rating for protection of DVR. Therefore, in this paper, an advanced modeling method of magnetic flux saturation is used to analyze a magnitude and characteristic of magnetizing current. Simulation and experimental results considering characteristic of DVR system are provided to demonstrate the validity of the proposed analysis method.