The invention discloses a novel dynamic TSC (thyristor switched capacitor) and SVG (static var generator) hybrid reactive compensation device and method. The device comprises an SVG controller, an SVG power unit and TSC branches, wherein the SVG power unit comprises a breaker, a current sampling unit, an electric reactor and an IGBT (insulated gate bipolar transistor) module. The SVG controller is used for calculating reactive power demanded by a system; voltage fluctuation and flicker are inhibited in time due to the characteristic of high dynamic response speed of an SVG, and after a load is stabilized, the TSC branches are put into use to reduce reactive power provided by the SVG; after the load is shut off, excessive reactive power is quickly absorbed through dynamic response of the SVG, and then the TSC branches are cut off step by step. The characteristic of high dynamic response speed of the SVG can be used to inhibit the voltage fluctuation and flicker, and meanwhile, the defect of insufficient SVG capacity can be overcome; and meanwhile, the SVG works in a low load state, the service life of the SVG is prolonged, accurate compensation can be realized, and the inhibition capacity of voltage fluctuation and flicker is greatly improved.