Reactive power compensation of dynamic loads is one of the most important topics in electrical power systems. Therefore, various compensation techniques are continuously being developed in order to improve the power quality. In this context, this paper deals with the simulation and the analysis of a powerful Fixed Capacitor-Thyristor Controlled Reactor (FC-TCR). For this aim, a circuit model of the FC-TCR is designed to keep the power factor in desired limits by adjusting the triggering angles of thyristors. Both the results before and after the compensation process for the same load conditions are presented in the study and thus a comparison is made focusing on the effect of FC-TCR.