In order to improve the power quality and operation efficiency of high-speed traction systems, a new electrical railway power quality management system is proposed. Based on the normal back-to-back power quality control facility in electrical railways, the primary fundamental power quality problems such as poor power factor, three-phase current unbalance, etc. are solved by considering traction and regeneration condition together for compensation. The unnecessary power loss on dissipation resistors and extra investment on storage facility are saved by taking the feedback energy into the primary-side grid or other traction-condition locomotives. A simulation model is established in Matlab/Simulink based on some measured data. Simulation results show that the unbalance of three-phase current is significantly reduced, the power factor is greatly raised, and the primary-side power quality is obviously improved. On the other hand, the regeneration energy can be used by other traction locomotive, and the system operation efficiency is enhanced. This work is supported by the Planned Science and Technology Project of Hunan Province (No. 2016TP1023) and Scientific Research Fund of Hunan Provincial Education Department (No. 15A170 and No. 16A191).