The wind energy generation, utilization and its grid penetration in electrical grid are increasing worldwide. Injection of the wind power into an electric grid affects the power quality. The main power quality issue which has gained its concentration is the harmonic behavior of the system. This project suggests a scheme in which a VSC based STATCOM is used to reduce the harmonic content. A MATLAB simulink model is prepared to demonstrate the STATCOM control scheme which can effectively reduce the harmonic content in the system.