The problem of maintaining stable voltage levels in the radial distribution networks is very limited, and more effort is persistent as loads increase and distributed generation units (DG) become more common. When the 33-bus distribution system is used for benchmarking and testing, excessive voltage drop on the buses away from the main substation can cause concerns. Most of these drops come about due to a combined effect of accumulating line impedance and varying load distribution on the feeder lines. The current work constitutes the utilization of a Static Synchronous Compensator (STATCOM) as an element of Flexible AC Transmission Systems (FACTS) aiming at performing dynamic reactive power support and enhancing voltage regulation. A load flow study using the backward (or forward) sweep method is performed in order to identify the critical areas of voltage instability. Based on the derived detailed voltage sensitivity analysis, optimum locations for locating the STATCOM to provide maximum system benefit are identified. It is worth reporting that the installation of STATCOM clearly improves the voltage profile over the network, and the whole system regulation capacity is increased. This is further elevated using closed-loop control mechanisms that are specifically based on two closed-loop control mechanisms: Proportional Integral Controllers (PIC) and Model Predictive Controllers (MPC). The Grey Wolf Optimization (GWA) algorithm is used to fine-tune these controllers such that they allow dynamic variation of the control parameters according to real-time variations of load and generation. The outcomes of the simulations confirm that the proposed methodology stabilizes bus voltages, minimizes deviations, and strengthens the network resilience to different operating conditions. STATCOM with integration and GWA-optimized intelligent controllers have great synergism in the sense that the voltage stability and distribution system performance have been improved considerably.