The leakage reactance of the compensation transformer in Dynamic Voltage Restorer (DVR) has no corresponding national standards. The paper proposes the LCL filter composed of leakage inductance of the transformer and the LC filter at the arm side. According to the design requirements of LCL filter, the transformer leakage inductance and impedance voltage drop are determined, and the parameter selection principles of LCL filter are analyzed combined with the characteristics of DVR. Using the method, the simulations and experimental results of 30 kVA capacity of DVR voltage drop compensation demonstrate that the method can meet the performance indicators, and the harmonic distortion rate of gird voltage after the compensation is less than 5%.