The paper introduces a virtual cathode oscillator (vircator) with quasioptical resonator. The resonator offers selfconsistent feedback and modechoosing mechanisms. It serves the purpose of enhancing the transform efficiency, shortening the saturated time and achieving both stable frequency and narrow bandwidth. The property of the system is analyzed by means of the scalar wave theory. Results of 2.5D numerical simulation of the device are presented. A powerful microwave with quasiGauss mode which is apt to focus and radiate is obtained at 7.0GHz, the time average output power overtakes 1.3GW, and the average efficiency approximates to 10%. The simulation confirms the conclusion of the theoretic analysis.