The invention discloses a two-phase STATCOM (Static Synchronous Compensator) management device on a traction side of an electrified railway, and a control method of the device. The device is connected with a two-phase power supply arms on a secondary side of a traction transformer in parallel, and comprises converter equipment and a control system. The converter equipment comprises two single-phase full-bridge inverters with a back-to-back structure form, and two groups of passive filters, wherein the transfer of active power between the two power supply arms can be realized through the control on capacitor voltage on a shared direct current side, and thus the load of two phases can be balanced; the two groups of passive filters are used for compensating harmonic wave and reactive power. The control system comprises a data acquisition system, a master control system, a PWM (Pulse-Width Modulation) signal generation system and a thyristor driving system. The device is arranged on a low-voltage side, so that the capacity demand of the device is reduced, the cost of the device is lowered, and the reliability of the device is improved.