A variable compression ratio system for an internal combustion engine, including a variable compression ratio mechanism for continuously varying a compression ratio of the engine, the variable compression ratio mechanism including a control shaft rotatably moveable to a rotational position corresponding to the compression ratio, a hydraulic actuator driving the control shaft to the rotational position depending on operating conditions of the engine, a hydraulic pressure source mechanically driven by the engine to produce a hydraulic pressure supplied to the hydraulic actuator, and a hydraulic control for variably controlling the hydraulic pressure supplied to the hydraulic actuator on the basis of the engine operating conditions.