The invention proposes a method and a system for setting dynamic reactive power compensation device parameter, which relate to the electric power technology field. The method comprises: constructing a grid structure for a wind power gathering area; deriving a sensitivity transfer function of the grid structure; obtaining a controller transfer function of the SVC of the dynamic reactive power compensation device wherein the SVC is about to be connected to the grid structure and the transfer function Includes the control parameter; determining an open-loop transfer function based on the sensitivity transfer function and the controller transfer function; and setting the control parameter according to the open-loop transfer function. According to the invention, under the condition that the system stability is ensured, the controller parameter is set, which is of great guiding significance for the system planning and actual onsite operation.