In order to improve the power factor, reduce line loss, stabilize user terminal voltage in low voltage power distribution system, this paper proposes a new method to realize VAR adjustment, in which a fast dynamic multi DSTATCOM static VAR compensation and TSC VAR compensation are combined, and DSTATCOM adjusts VAR by changing voltage and frequency between the fixed capacitor capacity. The method can realize stepless speed dynamic compensation, TSC can realize step VAR compensation, and the combination of the two achieves the stepless adjustment of high-capacity VAR compensation. The control principle and control strategy of the system are analyzed. Two-stage VAR compensation system has the characteristics of small volume, low cost, fast dynamic response, etc. Experiments show that the method is reliable and practical.