This study proposes for the first time a power transformer based on a nano two phase composite material with an inherent magnetic state self-regulation capability. The transformer makes full use of the effective conversion of magnetization, demagnetization and excitation characteristics of two-phase composite materials, and realizes the compensation of DC bias of the transformer. We propose a new transformer structure design scheme with DC bias compensation and inductance adjustment capability. The magnetic field distribution of the core and the calculation and simulation of the transformer temperature rise are simulated and analyzed. After verification, effective decoupling has been achieved between the left and right iron cores of the transformer and the nano biphasic composite magnetic material. Finally, based on the electromagnetic design scheme, two new 10 kVA power transformers with DC bias suppression and inductance regulation functions were successfully produced, and their performance was experimentally verified. Provided innovation and technological support for energy-saving power equipment in China’s smart grid.