Presently, shunt reactors (SRs) play a crucial role in addressing power quality issues. These SRs are designed to mitigate the reactive power in the system, manage high voltages, suppress power frequency fluctuations, regulate over-voltage, eliminate excitation in generators and dynamically compensate for transmission line power charges. The application of the finite element method (FEM) in the design of SRs has been recently presented by many researchers, particularly in both no-load and full-load conditions. However, its utilization in the manufacturing of electrical SRs remains relatively limited. In this study, it is split into two main steps. First, an analytical design is proposed to define the desired parameters with affects of different flux air gaps. Then, a finite element approach is introduced to simulate magnetic field quantities (such as inductance, fringing flux, magnetic flux density, electromagnetic force, current, voltage) of the SRs. The development of the methods is validated on the practical SR of 16 MVar, and a voltage of 500/√3.