This document is a project report submitted in partial fulfillment of the requirements for a Bachelor of Technology degree in Electrical Engineering. The report details the simulation and implementation of a Fixed Capacitor Thyristor Controlled Reactor (FC-TCR) for improving power factor by compensating reactive power. It includes simulation of the FC-TCR circuit in Proteus software and MATLAB. The report provides background on power factor, describes the methodology used, and outlines the software and hardware components involved including Arduino, Proteus, and MATLAB. It also includes mathematical calculations, future applications, and conclusions.