The overrun of transient power quality index caused by the large-capacity electric arc furnace (EAF) has become a prominent problem affecting the safe and stable operation of the power system. (1) In this paper, the relationship between arc furnace volt-age and current is derived based on the different stages of arc combustion, and the random variation of chaotic phenomenon of the arc voltage are simulated. Established an EAF model suitable for the study of transient power quality problems. (2) Take 50t AC EAF as an example to analyze the reactive power impact and the influence on the point of common coupling (PCC) voltage caused by the three-phase short circuit of the electrode. The results show that the experimental results are consistent with the theoretical analysis, verifying the correctness and effectiveness of the model. (3) When the three-phase short-circuit occurs, the reactive power impact is nearly 6 times that of normal operation, the short-circuit current is 2.66 times that of normal operation, and the effective value of the PCC voltage has dropped by 40.37%, which provides a theoretical basis for real-time compensation of impulsive reactive power and improvement of the transient power quality of the EAF.