The superconducting magnetic energy storage system (SMES) has good characteristics such as high efficiency, quick response, no deteriorations, etc. However it is still far from wide application. The main obstacle is due to its high cost. One of the most effective ways to reduce the cost of SMES is to make it multifunctional. In this paper, a dual mode control strategy is proposed. With the proposed control strategy, The SMES can compensate voltage dip, current harmonics, reactive power, and active power fluctuation with a simple topology. The efficacy of the proposed control strategy is verified by simulation results.