By using simulation, compensating characteristics of a voltage sag compensator utilizing single-phase matrix converter is examined. System configuration is described and mathematical model of single-phase matrix converter is derived by using the state space averaging method. In addition, the single-phase matrix converter is stabilized by phase-lead compensation. Finally, compensating characteristics of the compensator is investigated for 500 W R-L load and it is demonstrated that the compensator can operate correctly for loads for the range of power factor 0.6 (lagging) - 0.8 (leading) and for up to 50% voltage sag.