These days, the application of electronic power transformers (EPTs) is expanding in place of ordinary power transformers. These transformers can transmit power via three or four wire converters. Their dynamic performance is extremely important, due to their complex structure. In this paper, a new method is proposed for improving the dynamic performance of distribution electronic power transformers (DEPT) by using sliding mode control (SMC). Hence, to express the dynamic characteristics of a system, different factors such as the voltage unbalance, voltage sag, voltage harmonics and voltage flicker in the system primary side are considered. The four controlling aims of the improvement in dynamic performance include: 1) maintaining the input currents so that they are in sinusoidal form and in phase with the input voltages so they have a unity power factor, 2) keeping the dc-link voltage within the reference amount, 3) keeping the output voltages at a fixed amount and 4) keeping the output voltages in sinusoidal and symmetrical forms. Simulation results indicate the potential and capability of the proposed method in improving DEPT behavior.