Abstract: For chaotic phenomenon in chaotic ferroresonance system of power grid, the paper proposed a nonlinear compensation and control method of chaotic ferroresonance system based on dynamic fuzzy neural network. The method uses dynamic fuzzy neural network to approximate nonlinear part of the system, so as to eliminate the chaotic phenomenon of over-voltage and stabilize the system to target location, which achieves nonlinear compensation and control of the system. Matlab simulation results show that using the method can get correct result and fast response.