This paper proposes a novel controllable reactor with function of intrinsic magnetic state regulation based on the nano-composite magnetic material. Firstly, in order to analyze the conversion mechanism and preparation technology of this material, one mathematical model of hysteresis is established and the corresponding relationship between the coercivity and the remanence of this material is determined; Secondly, the nanocomposite magnetic material is implanted into the traditional controllable reactor; then the structure design and electromagnetic design of controllable reactor are completed based on the reluctance of magnetic circuit theory. Finally, effective control parameters and control system for the controllable reactor are designed. Simulation and experiment results show that the inductance value can be regulated continuously and rapidly, and the reactor can be used for reactive power regulation and harmonic suppression which provides intelligent and energy-saving power equipments for intelligent electric network safe operation.