The invention provides a distributed power flow controller topology based on an MMC and a control method. The topology comprises a parallel side current converter composed of a parallel side three-phase current converter based on the MMC and a parallel side single-phase current converter, and a series side current converter composed of multiple sets of series side single-phase current converters with the same structure. The alternating current side of the parallel side three-phase current converter based on the MMC is connected with an alternating current power grid. The direct current side of the parallel side single-phase current converter is coupled with the parallel side three-phase current converter based on the MMC. The multiple sets of series side single-phase current converters are distributed in a transmission line. According to the control method, hierarchical control over the parallel side current converter is carried out through a parallel side system layer, a parallel side current converter layer and a parallel side valve control layer; hierarchical control over the series side current converter is carried out through a series side system layer, a series side current converter layer and a series side valve control layer. The topology is highly modular, convenient to expand and suitable for various voltage classes, and unbalanced running, fault ride-through and recovery capability are all superior to those of a traditional topological structure.