The invention discloses a high voltage reactive compensation inverter circuit and a compensation method. The inverter circuit comprises four bridge arms connected in a parallel mode and a capacitive circuit connected to the bridge arms in a parallel mode, four phase wires, as a, b, c and n are respectively guided from the four bridge arms and connected with the power grid, a neutral line is guided from the midpoint of the capacitive circuit; the capacitive circuit comprises a first capacitor and a second capacitor connected to two ends of a DC bus after serially connected together, each bridge arm comprises a first switch tube, a second switch tube, a third switch tube and a fourth switch tube respectively connected with a diode in a parallel mode, the first switch tube, the second switch tube and the third switch tube are connected with two ends of the DC bus after serially connected together, the phase wire is guided from the middle of the second switch tube and the third switch tube, one end of the four switch tube is connected between the first switch tube and the second switch tube while the other end is connected between the first capacitor and the second capacitor. The high voltage reactive compensation inverter circuit and the compensation method can greatly reduce the switch loss, avoid complex calculation process, have good compensation timeliness, improve the output voltage wave form and have little harmonic pollution.