This paper proposes a stand alone type single-phase fuel cells micro-source with a voltage sag compensator for compensating the ac output voltage variations (sag or swell) of micro-source. The proposed micro-source is consist of a PEM(polymer electrolyte membrane) fuel cells simulator, a full bridge de converter, a 60Hz PWM(pulse width modulation) VSI(voltage source inverter), and a voltage sag compensator. Voltage sag compensator is similar to the configuration of hybrid series active power filter, and it is directly connected to micro-source through the injection transformer. Compensation algorithm of a voltage sag compensator adopts a single phase p-q theory. Effectiveness of the proposed the system is verified by the PSIM(power electronics simulation tool) simulation in the steady state and transient state which the proposed system is able to simultaneously compensate the harmonic current and source voltage sag or swell.