This paper analyzes the process of reactive power compensation using thyristors switched capacitors TSC topology based on multiterminal switch during the starting of induction motor. The paper explains the control principle of this TSC topology which depends on the multiterminal switch. To actively track the required reactive power for the dynamic load and to perfectly transit from it from one level to other, proper control system is established. MATLAB/SIMULINK is used to develop a simulation model to prove the dynamic performance of the proposed TSC during the compensation of reactive power required for induction motor during starting.