The invention discloses a multifunctional MMC (Modular Multilevel Converter) low voltage low current simulation prototype and a simulation method. The simulation prototype comprises a positive valve group of a full-bridge MMC, a negative valve group of the other full-bridge MMC and a voltage regulator. The voltage regulator is connected with a power supply and a starting resistor. The starting resistor is connected with the positive valve group of the full-bridge MMC and the negative valve group of the other full-bridge MMC through utilization of two wire inlet reactors. Output ends of the positive valve group of the full-bridge MMC and the negative valve group of the other full-bridge MMC are connected with a direct current bus. A voltage transformer, a current transformer and a knife switch K1 are mounted on an output circuit of the voltage regulator. The starting resistor is connected with a knife switch KMs in parallel. The two wire inlet reactors are respectively connected with acurrent transformer CTp and a knife switch K2, and a current transformer CTn and a knife switch K3 in series. The output ends of the two full-bridge MMCs are respectively connected with a knife switchK4, a voltage transformer PTdc+ and a current transformer CTdc+, and a knife switch K5, a voltage transformer PTdc- and a current transformer CTdc-. According to the simulation prototype and the simulation method, control over single/two MMC valve groups and multi-voltage-level MMC testing are realized.