The invention provides a capacitor-tuning arc suppression system for dynamic reactive compensation adjustment. The capacitor-tuning arc suppression system comprises a TCT (Thyristor Controlled Transformer) type Z-shaped transformer (1) and a capacitor-tuning arc suppression coil (2) electrically connected with the TCT type Z-shaped transformer (1); the capacitor-tuning arc suppression coil (2) is grounded; and a capacitor (4) is arranged on the secondary side of the capacitor-tuning arc suppression coil (2). The capacitor-tuning arc suppression system for dynamic reactive compensation adjustment greatly reduces the production cost by using the capacitor-tuning arc suppression coil. Meanwhile, the capacitor-tuning arc suppression system for dynamic reactive compensation adjustment, which merely adopts a set of device, can adjust inductive reactive power and adjust ground capacitance and current, so that a large amount of land resources and money input are saved.