A method of voltage stabilization based upon Static Var Generator (SVG) was proposed in this paper to solve the prominent problems of high energy loss and low terminal voltage of country electrical network in Chaoyang (Lingcheng electric line, 66kV). Relying on the control strategy and the selection of closed loop control amount and regulator, as well as the closed-loop current control of SVG, it is possible to make the output status of SVG change with the actual situation of the system and thus stabilize the voltage of power system.