A system and method for variably controlling regenerative braking are provided. The system includes an imaging device that is configured to generate image information by photographing a front vehicle and a road situation and an accelerometer that is configured to sense acceleration of the front vehicle or a subject vehicle. A radar sensor is configured to sense a distance between the front vehicle and the subject vehicle. A vehicle controller is configured to recognize the acceleration of the front vehicle or the subject vehicle, the distance between the front vehicle and the subject vehicle, and whether a brake light of the front vehicle is turned on, to determine whether to actively decelerate the subject vehicle, and execute active deceleration.