The invention discloses an improved instantaneous symmetrical component method-based current detection method for a distribution static synchronous compensator (DSTATCOM), which comprises the following steps of: 1, determining a symmetrical component method and a method for expressing an instantaneous value in a phasor time domain; 2, determining the instantaneous value; 3, implementing the improved instantaneous symmetrical component method; 4, establishing a model by adopting a MATLAB simulation tool to perform simulation analysis on a conclusion; 5, filtering, converting and processing data; and 6, subtracting obtained three phases of positive fundamental active currents iafp<+>, ibfp<+> and icfp<+> from a load current to obtain required comprehensive compensation command currents iac, ibc and icc comprising harmonic components, negative sequence components and reactive components. The method avoids a complex phase shift circuit, a phase locked loop circuit, and an address generator and a table lookup process of sine and cosine function table, and eliminates errors and faults caused thereby.