This paper deals with the theoretical analysis of de-energization of EHV Shunt Reactor along with computer modeling / simulation of problem using EMTP-ATP Draw. After modeling of particular power network, different simulations with different switching conditions, circuit configurations and varying parameters have been done in order to analyze the worst situation and to propose the optimum solution to limit the over-voltages due to de-energization of EHV Shunt Reactor. During simulations it was observed that over-voltages across shunt reactor and circuit breaker depends mainly on “chopping level” of circuit breaker which is circuit breaker dependant. Results obtained from all simulation show that these type of over voltages can only be reduced by using either surge arrester across shunt reactor, by installing capacitors across shunt capacitors, by using surge arrester across circuit breaker or by using point on wave switching in order reduce the probability of re-ignitions by circuit breaker due to short arcing time.