With the rapid development of computer, control and communications technology, Smart Grid has got a rapid development and preliminary application. Reactive power compensation system plays an important role in power supply system all the time. Therefore, reactive power compensation system is into Smart Grid, and realizes the remote monitoring, which has very important significance. This paper introduces a design model of embedded reactive compensation control system based on dual-CPU, puts forward the whole system framework, including the design of the software and hardware system. And the system adopts the fuzzy-pid control algorithm, so that the controller can satisfy the grid of reactive-power compensation required control precision and speed. In order to make the system into intelligent network, expand the Ethernet interface, the system adopts the industrial Ethernet protocol, and improves the system of remote monitoring system performance. In the system software design, using Linux and QT improves stability and scalability of system. The practical test shows that the system can be into Smart Grid, and realize the remote monitoring of system, believe that it will have broad application prospects.