A novel STATCOM based on the bridge-type AC/AC converter is proposed in this paper, which does not require DC link energy storage and is more reliable and cost-effective. The working principle, working mode, and compensation characteristics of the novel STATCOM were analyzed. Single-phase reactive current detection and control strategy based on orthogonal decomposition transformation was proposed. The small-signal model was established and the compensator design was performed according to the Bode diagram. The single-phase experimental results verify the effectiveness of the novel STATCOM.