The invention discloses an automatic tracking arc extinguishing compensation and line selection device based on a common parallel resistor, which belongs to the field of relay protection. The device comprises a plurality of grounding transformers, and the neutral point of the high-voltage side of each grounding transformer is sequentially connected with a lightning arrester, an arc extinguishing coil, a single-phase voltage transformer, a current transformer, a line selection resistor and a controller of the line selection resistor. Capacitive current compensation is realized, a fault line canbe selectively tripped off, power transformation equipment can be arranged more compactly in a limited transformer substation grounding transformer chamber range, the equipment fault rate can be reduced, and the equipment operation and maintenance cost can be reduced.