Predictive direct power control (P-DPC) strategy based on sequence component method is introduced to control static synchronous compensator of distribution network, so as to solve the incapability of compensation of three-phase unbalanced load current. Taking the influence of negative voltage into account, first of all, instantaneous symmetrical component method is applied to every electrical measurements to construct sequence equivalent circuit. Then positive and negative sequence power predictive models can be deduced. The P-DPC based on positive power predictive model is used in D-STATCOM to compensate reactive power; and the negative predictive model is adopted to realize the compensation of negative load current. Two different control strategies are combined to regulate the output current of D-STATCOM strictly, as a result, the threat of converter overcurrent caused by negative voltage is eliminated and the compensation of reactive power and negative load current is achieved. Simulation results verify the validity of the proposed control strategy even under unbalance voltage.