In order to improve the power quality of 220 kV transformer substation, a four winding transformer based on inductive filtering technology was proposed. Compared with the traditional three winding transformer, the four winding transformer has an additional filter winding with the characteristics of zero impedance design.The additional filter winding connecting to the set of filter compensation devices can efficiently restrain the harmonic from the 35 kV and 110 kV load sides, and reduce the harmonic currents of 220 kV side. Comparative analysis of several commonly reactive compensation was studied, and match coefficient distribution method was adopted to design transformer matching filter compensation devices in order to realize the purpose of the minimum inductance, which can guarantee the efficiency of filter compensation devices. Finally, through the software of PSCAD/EMTDC, the modules of the four-winding transformer and filters are modeled, and a total simulation goes on with all modules. The results show that the induction filtering four winding transformer and its filter are much better than the traditional three winding transformer, which is applicable to practical engineering.