The invention provides an automatic tracking compensating arc extinction system used for a neutral point of an electric generator. The automatic tracking compensating arc extinction system comprises an arc extinction coil module and a core controller; the core controller is connected with the arc extinction coil module for performing automatic tuning control and operation monitoring of the arc extinction coil module, wherein the arc extinction coil module comprises an arc extinction coil, an on-load tap changer, a secondary winding, a thyristor switch and a damping resistor; the secondary winding is wound around an iron core of the arc extinction coil; the secondary winding is connected with the damping resistor in parallel through the thyristor switch; and the on-load tap changer is arranged on the primary side of the arc extinction coil for connecting one or more connectors on the primary side of the arc extinction coil. By virtue of the automatic tracking compensating arc extinctionsystem, multi-unit or multi-bus-section parallel operation monitoring and automatic tracking and compensating optimization of the arc extinction coil can be realized, so that the severe potential safety hazards in the existing products can be avoided; and in addition, the damping ratio is constantly unchanged, and the optical damping effect is always achieved, so that the defect of instable damping effect can be avoided.