It solves the problem of harmonic current in power system. It also compensate reactive power and balances load on three phase(if load is unbalanced).It measures load current and then transforms to dq0 coordinate system. Initial position of d axis is chosen in such a way that active part of current is given by d axis. Oscillating part of both d and q axes component of load current should be injected to remove harmonics. Non-oscillating part of q axis component should be injected to compensate reactive power. Zero sequence component should be injected to balance the loads. In this way, current that should be injected is calculated in dq0 coordinate system. It is transformed to abc coordinate system. This current is reference compensating current . The compensating current is injected to the network via three phase inverter using hysteresis band current control(HBCC) method. In this way, harmonic and reactive component of load is supplied by this shunt active power filter.