This paper presents the features offered by solid state transformer (SST) in terms of improvement in power quality when integrated in distribution system against conventional low frequency transformer (LFT). The 4.16/0.48 kV, 500 kVA, 3 Phase SST has been modeled in Simulink platform of MATLAB along with its control where the design has been validated with recorded waveforms obtained after modeling with adopted nominal parameters. It has been observed that momentary sag/swell of voltage at supply side has direct influence upon the voltage at load terminals connected to secondary of LFT whereas impact upon voltage at SST secondary side is negligible. Furthermore, reactive power support offered by SST to the system has been analyzed and performance of system under SST and LFT integrated distribution system has been compared such that connected loads are inductive in nature. The benefit to distribution system in terms of power factor improvement and fault isolation feature offered by SST has also been investigated in this paper.