A pressure compensated subsea electrical system and a pressure compensated subsea electrical system which has a housing filled with a dielectric liquid. The housing has a first housing portion and a second housing portion in pressure communication with each other. The first housing portion includes a transformer, and the second housing portion includes a power converter. The pressure compensated subsea electrical system includes a pressure compensator arranged to compensate pressure inside the housing. The pressure compensator is enabled to compensate pressure in both the first housing portion and the second housing portion.