In this article, the magnetic and thermal characteristics of a magnetically controlled shunt reactor (MCR) with distributed magnetic valves are studied via multiphysics coupling analysis. A full-size two-dimensional (2-D) simulation model of a 35-kV/10-MVA MCR with distributed magnetic valve is established in the finite element software ANSYS and COMSOL. The iron loss of MCR is obtained through the field-circuit coupling method. Then the steady-state thermal model of MCR is established in COMSOL and the 2-D temperature distribution of the iron core is simulated. Simulation results indicate that the temperatures of the iron core where magnetic valves are located are higher and more fluctuating than at other parts, to which more attention should be paid during the future design of MCRs.