Aiming at the serious harmonic pollution and the low power factor in the distribution network of industrial enterprises, this paper develops an integrated method for harmonic suppression and reactive power compensation suitable for the distribution network of industrial enterprises. The integrated method realizes the dual functions of harmonic filtering and reactive power compensation, and filters out the harmonic current to get a symmetrical current waveform while ensuring safe operation of the power compensator. In addition, it solves the problems of high harmonic content, small power factor in the distribution network, and device burnout caused by direct input of reactive power compensator. The main contributions of this paper are as follows: (1) According to the demand for the integration of harmonic suppression and reactive power compensation, the steps of integrated method for harmonic suppression and reactive power compensationare proposed, and then the methods for harmonic filtering and reactive power compensation are investigated; (2) a method for designing the capacity of a filter capacitor and the rated parameter of an electromagnetic coupling reactance converter is proposed, and an optimization simulation system is constructed to design the parameters of the filter; (3) a simulation system is developed, followed by parameter design and simulation analysis of harmonic filtering subsystem (HFSS), reactive power compensation subsystem (RPCSS) and the integrated system of harmonic suppression and reactive power compensation. Simulation results verify that the HFSS is put into operation first and then switched off later to ensure the normal operation of other equipment in the distribution network. After the treatment, the power factor, harmonic current content and total distortion rate all meet the national standards. The integrated method can dynamically track harmonics and reactive power changes, filter out harmonics, improve power factor and the symmetry level of the power source, and ensure the normal operation of other equipment in the distribution network. The research results lay a certain theoretical and technical foundation for the harmonic filtering and reactive power compensation theory, technology and its device innovation to achieve effective suppression of power harmonics and reactive power compensation.