STATCOMs is used widely in power systems these days. Traditionally, this converter was controlled using a double-loop control or Direct Output Voltage (DOV) controller. But DOV controller do not function properly during a three-phase fault and has a lot of overshoot. Also, the number of PI controllers used in double-loop control is high, which led to complexities when adjusting the coefficients. Therefore, in this paper, an improved DOV method is proposed which, in addition to a reduced number of PI controllers, has a higher speed, lower overshoots and a higher stability in a wider range. By validating the proposed DOV method for controlling the STATCOMs, it has been attempted to improve the dynamical behaviors of induction motor using Matlab/Simulink, and the results indicate a better performance of the proposed method as compared to the other methods.