Inrush current is a major problem in the coupled transformer of a dynamic voltage regulator（DVR）. To solve the problem， a novel control strategy for DVR is investigated. The present inrush current mitigation method will cause transient overflowing currents in the filter capacitor if the filter is located before the transformer. And the conventional dual closed-loop strategy with a constant proportional parameter cannot meet demands of both transient and steady states performances. Based on this， a novel strategy is proposed which uses variable parameters reflecting the decaying process from the transient state to the steady state. The strategy not only mitigates the transformer inrush current but also limits the transient overflowing current in the filter capacitor and inverter. Such a design optimizes the inverter and transformer performance， and enhances compensation effects. It is also validated by the simulation results.