In view of the phenomenon that the distributed static synchronous compensator (DSTATCOM) is insufficient in compensating the reactive current of the unbalanced load and the compensation speed and accuracy of the unbalanced current in the three-phase four-wire distribution network. Firstly, the four-wire DSTATCOM mathematical model is established, then the design of a new linear active disturbance rejection controller (LADRC) is completed, and the new controller is applied to the current inner loop to quickly track the command current signal. The disturbance immunity, tracking and stability were analyzed by classical control theory and mathematical theory. Finally, the three-phase four-wire DSTSTACOM system model under the traditional and new LADRC is built through the MATLAB /Simulink simulation platform for simulation experiments.The results show that under the action of the new controller, the power factor of the system is closer to 1, the midline current is closer to 0 and the response curve is faster, indicating that the four-wire DSTATCOM under the new LADRC has better compensation speed and accuracy.