The interaction between voltage-source inverter and static var compensator（SVC） may cause instability in an islanded micro-grid.In order to solve these problems

taking a low-voltage micro-grid for example

we established output impedance models of SVC and voltage-source inverter

and studied the interaction mechanism between SVC and voltage-source inverter.The results of Nyquist stability criterion and admittance ratio analysis show that stabilization of single SVC or voltage-source inverter is not sufficient for the whole system.A lead-lag compensator which is beneficial to improving the interaction between the SVC and the voltage source inverter is added to the SVC voltage regulator.The voltage source inverter and SVC parallel operation model are built on the MATLAB/Simulink simulation platform.The simulation results show that the addition of lead-lag compensator link in the SVC regulator can improve the stability margin of the system.