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In the conventional sliding mode control, the four-leg distribution static compensator (DSTATCOM) currents are controlled based on a current error in each phase. However, the four currents in a four-wire system can not be independently controlled variables and hence one of the four controllers is redundant in conventional schemes. Further, the current dynamics of a DSTATCOM converter are coupled through converter pole voltages in the natural reference frame. This leads to cross-coupling in the sliding variable equations with respect to four manipulated input variables. Considering the above points, in this paper, the current due to Thevenin’s equivalent load neutral-point voltage is considered as a fourth independent controlled variable and the corresponding system dynamic equations are presented. To get a decoupled feature, a new sliding surface function is structured. The performance of a DSTATCOM with the proposed control scheme under various operating conditions is validated through a detailed simulation study and experimental results, obtained from a laboratory prototype of four-leg DSTATCOM. [ABSTRACT FROM AUTHOR]