An interline dynamic voltage restorer (IDVR) is invariably employed in distribution systems to mitigate voltage sag/swell problems. An IDVR merely consists of several dynamic voltage restorers (DVRs) sharing a common dc link connecting independent feeders to secure electric power to critical loads. While one of the DVRs compensates for the local voltage sag in its feeder, the other DVRs replenish the common dc-link voltage. For normal voltage levels, the DVRs should be bypassed. Instead of bypassing the DVRs in normal conditions, this paper proposes operating the DVRs, if needed, to improve the displacement factor (DF) of one of the involved feeders. DF improvement can be achieved via active and reactive power exchange (PQ sharing) between different feeders. To successfully apply this concept, several constraints are addressed throughout the paper. Simulation and experimental results elucidate and substantiate the proposed concept. © 2013 IEEE.