The invention provides a novel controllable continuous reactive power compensation system comprising an upper computer, a DSP, a capacitor, a magnetic control transformer, a DC power supply and multiple sensors. Acting as a central control unit, the DSP analyzes and outputs control signals according to the user control requirements of the upper computer and the actual situation of the power grid of the existing network side and the user side fed back by the sensors. Output of the DC power supply is directly controlled by the control signals through a driving circuit so that continuous control of inductive reactive power compensation for the magnetic control transformer can be realized. Finally continuous reactive power compensation for the power grid performed by the system can be realized with combination of capacitive reactive power compensation for the capacitor. Meanwhile, a power transfer function is realized by utilizing the magnetic control transformer when the system performs reactive power compensation.