This paper investigates the low-voltage ride-Through (LVRT) characteristics of microgrid with DSTATCOMs and microgrid capability to support the utility grid during external faults. Two approaches are taken in order to investigate the LVRT behaviour of a grid connected microgrid as a single entity. A distribution static synchronous compensator (DSTATCOM) is installed at different locations of the microgrid, and the voltage and reactive power support to the external grid is analysed. The grid connected microgrid is subjected to different operating conditions and the impact of DSTATCOM is investigated. DSTATCOM operation in a multi-microgrid environment is also investigated in this paper.