In this paper a Dynamic Voltage Restorer (DVR) based on a matrix converter without energy storage devices is proposed to cope with voltage fluctuations. The ac/ac power converter takes energy from the grid during voltage sag/swell. By connecting the matrix converter's input terminals on the load-side and injecting the compensation voltages on the supply-side, it is possible to hold a constant input voltage, resulting in an efficient solution for compensating deep voltage sags and swells. Thus, the proposed topology has the ability to compensate balanced and unbalanced voltage fluctuations and to eliminate the energy storage elements. The space-vector modulation (SVM) technique is utilized to fulfill the input and output requirements. Numerical simulation results are presented to validate the approach.