Abstarct: One of the main challenges in electrical systems is the load fluctuations caused by industrial equipment such as electric arc furnaces, which can negatively impact power quality, increase losses, and reduce network stability. To address this challenge, this research proposes the development of an effective method for controlling and compensating reactive power using a static reactive power compensator and predicting reactive power demand baxsed on geometric series. For this purpose, after modeling the furnace with a model that accurately simulates the nonlinear and time-varying behavior of the furnace, an optimization method is utilized to calculate reactive power, which reduces the effects of interfering harmonics and increases the accuracy and response speed of the system. Additionally, the performance of the compensator has been improved using reactive power prediction. Simulation results indicate that the simultaneous use of static reactive power compensators and the reactive power prediction method leads to significant improvements in harmonic reduction, increased transmission capacity, and decreased voltage fluctuations in the electric arc furnace. This system has significantly enhanced the overall performance of the furnace and reduced delays caused by the reactive power calculation unit and the triggering angle of the thyristors.