Superconducting magnetic energy storage (SMES) system can be long-term, efficient, non-destructive electric energy storage, the decoupling control can run in four quadrant, can achieve power active power and wattless power real-time fast independent adjustment. It is applied to the microgrid implemented through the SMES dynamic power compensation so as to greatly increase the initiative control of power grid operation. In this paper, the current source type SMES as the research object, the SMES system based on microgrid operation research. A microgrid PSCAD model including SMES system, SMES respectively provide short-term electricity, fault time buffer, improve microgrid power quality, micro smoothing grid and main network switching, optimization of DG improve the operation of microgrid operation economy of simulation study, provide a reference for SMES application in microgrid.