In this paper, we present optimization technique for the response time of DVR (Dynamic Voltage Restorer) and the possible compensation range of voltage dip by the DVR system. To protect 3-phase phase-controlled rectifier from voltage dip, DVR system needs to have optimum response time as an important design factor. Although the fast response time of DVR ensures wider range of voltage dip, DVR controller has so high cost and poor stability. This paper proposes DVR system with optimum response time required for certain intensity of voltage dips and good stability to support possible compensation range of voltage dip. Proposed technique showed optimum response time and good stability for overall system. We believe that proposed technique is reliable and useful in DVR design.