The invention discloses an iron core 
reactance regulator with the current control and short-circuit current-limiting functions and a control method thereof. The iron core 
reactance regulator comprises six square-shaped iron cores, 
direct current coils and 
alternating current coils. Each square-shaped iron core comprises a 
middle column, a side column, an upper 
magnet yoke and a lower 
magnet yoke, the six middle columns are combined to form a combined 
middle column, and the distance between the combined column and each side column adjacent to the combined column is equal. The 
direct current coils wind the combined 
middle column and are connected with an adjustable bias 
direct current source. The 
alternating current coils wind the side columns, and dotted terminals of the two 
alternating current coils on the opposite side columns are connected into a whole to be connected to a 
power grid. Air gaps are formed in the square-shaped iron cores. The control method comprises that when the 
power grid operates stably, the current value of the adjustable bias direct 
current source is adjusted to the command value; when the 
short circuit occurs and the short-circuit current is larger than the stable working current, the output current of the adjustable bias direct 
current source is lowered to the zero. The iron core 
reactance regulator is simple in structure, easy to achieve, low in cost and high in reliability.