The widespread utilization of power cables leads to an increased demand for capacitive reactive power balance in the power system. Additionally, the integration of a high proportion of renewable energy sources has introduced challenges related to reactive power fluctuations. Existing solutions for reactive power compensation and generation occupy substantial space and come with significant costs. An innovative approach is introduced, which combines magnetically controlled reactors with transformers to create a compact multifunctional single-stage magnetic valve type stereoscopic magnetically controlled transformer（SSS-MCT）. This novel solution not only retains the fundamental voltage regulation capabilities of traditional power transformers but also offers flexible reactive power adjustment. This design is particularly advantageous for urban substations with limited space availability. Finite element simulations are conducted to validate the performance of the SSS-MCT. The results show that this SSS-MCT can provide a reactive power regulation capacity of up to 94.5 kvar, with a maximum turns ratio offset of only 0.439%. Furthermore, it exhibits a harmonics content of merely 3.8%. This innovative solution offers 20% reduction in footprint, shows outstanding overall performance and the capability effectively meets the reactive power compensation requirements of the urban distribution grid.