To deal with the voltage drop of self‐excited induction generator when the loads are fed, a static synchronous compensator (STATCOM) are used to improve the load capacity of the SEIG and the power quality. Therefore, this paper proposes a Lyapunov‐based control based on a disturbance observer, which constructs a Lyapunov function from the mathematical model and transforms the error‐tracking problem into solving the inner‐loop control law. The control law satisfies the Lyapunov asymptotic stability. To eliminate the impact of model mismatch on the control strategy, a disturbance observer is incorporated into the current inner loop, improving the robustness of inner‐loop. The results demonstrate that the proposed method can reduce the sensitivity to line parameters, enhance inner‐loop robustness, and outperform traditional methods in response speed. © 2024 Institute of Electrical Engineers of Japan and Wiley Periodicals LLC.