As important members of the STATCOM (Static Synchronous Compensator), the passive elements play an indispensable role in the transient and steady state performance of STATCOM. The harmonics resonant phenomena have been pointed out in some papers. However from the engineering design point of view, a more detailed investigation should be conducted to give an insight into the effects of passive parameter selection on the system performance. Based on the experience in developing STATCOM, the authors proposed a modified mathematical model in a per-unit system as the base of parameter evaluation. With the proposed model, the authors analyze the influence of the per-unit passive parameters on the performance of STATCOM systematically. Simplified algebraic expressions for the magnitudes of the harmonic current as well as the dc voltage regarding the particular harmonics are derived, which can be used as an indication of the preference for the passive elements. The theoretical analysis was verified by digital simulation results of PSCAD/EMTDC and tests on a 10kvar prototype experimental device. The good agreements between the analysis results and the experimental results show that the approaches proposed in this paper can be used in the selecting and assessment the passive elements parameters in the design of an actual STATCOM. Copyright © 1999 Society of Automotive Engineers, Inc.