This paper presents a simulation study into the implementation of the single star flying capacitor converter modular multi-level cascaded converter (SSFCC-MMCC) as a STATCOM for unbalanced load compensation. The paper proposes a new concept of voltage source current control for the reference current tracking of the compensated currents. This control strategy enables the STATCOM system to compensate for both positive sequence reactive and negative sequence currents. Not only compensates for unbalanced load, but also keep the module Dc-link and flying capacitor voltages maintained at their rated values. Simulation results verify the performance of the chosen topology