Voltage sags and swells are one of the major power quality problems in distribution systems. This paper presents a new configuration of DVR based on Back-to-Back Stacked Multicell converter (B2BSMC). The main advantages of B2BSMC are increased number of output voltage levels, lower output voltage THD, reduced filter size or filter less operation, reduced stresses and lower switching losses of power electronic switches. This topology comprises of two conventional SM converters, which are connected back-to-back by two low frequency switches. The operation at lower frequency of B2BSMC results in lower switching losses than SMC. It has fewer number of power electronic switches than FCM converter. A modified Phase shifted PWM strategy is proposed and analysed in this paper for control of B2BSMC. The proposed converter and DVR control scheme is simulated in Gecko Circuits Software and integrated with MATLAB Simulink. Simulation results are presented to validate the effectiveness of the proposed DVR topology.