In this paper, the effect of the thyristor switched reactor-based static VAr compensator (SVC), which is one of flexible AC transmission systems (FACTS) controllers, to load voltages has been proposed in the three-phase system at static load and dynamic load conditions. The design and testing of TS R-based SVC are verified using the MATLAB/Simulink 7.04reg and Power Systems Toolbox. The results show that significant improvement on reactive power compensation and bus voltage regulation could be achieved by using the TSR-based SVC. Also, harmonic levels generated by TSR-based SVC do not cause to instability in the test system.