This study proposes a new application and a novel control scheme for utilising Smart PV and Smart Park inverters to mitigate temporary overvoltage (TOV) phenomenon in distribution systems. As more number of the inverter-based distributed generators such as PV are connected to a medium- and low-voltage distribution systems, TOV phenomenon becomes more prevalent during single line to ground fault. Currently, the IEEE 142 ‘Effective grounding’ technique has been the reference for various grounding schemes to prevent TOV. This study explores the potential of low-cost and a novel solution for the first time that utilises a specialised controller associated with PV/SmartPark inverters (Smart inverters) as a TOV suppressor. The efficacy of the aforementioned novel application has been demonstrated on a simplified benchmark system of the IEEE Standard 399-1997 with few modifications. A 4 MW conventional PV plant is considered along with 10 MVAR Smart inverter connected to the point of common coupling. During normal operation of the distribution systems, the Smart inverter controller acts in a voltage regulation mode to curtail the voltage rise due to reverse power flow from the 4 MW PV plant. During a fault condition, the TOV sensor enables the TOV control to suppress the violated limits of voltages in the healthy phases to an acceptable value.