A new topology based on indirect matrix converter (IMC) is proposed to enhance the input reactive power capability. This topology consists of a conventional IMC and an auxiliary switching network (ASN), which is connected to the dc-link of the IMC in parallel. With the aid of ASN, an implicit current source converter-based static synchronous compensator can be embedded into an IMC, which lays a foundation for the input reactive power control. Based on the proposed topology, two modulation schemes are presented, and the formations of the output voltage and input reactive current are decoupled in both of them. To minimize power loss and improve input current quality, a double closed-loop control algorithm is introduced, in which the current through the dc inductor in ASN is controlled to be minimum. Different from the conventional IMC, the input reactive power of the topology is independent of its load condition without considering the practical constraints. The effectiveness of the proposed topology and modulation scheme is confirmed by experimental results.