This project is very useful in industries to eliminate the harmonics. In any industries like thermal power plant, hydral power plant the producing supply is 50 hz frequency a.c supply purely sinusoidal, but it is reached to our home its become multiple frequency and it creates a harmonics. using this project we can eliminate the harmonics at the supply it self, it is possible to reduce the harmonics at the supply level.because of harmonics lot of losses are developed, because of this losses reliability is reduced, device life time will be reduces so by using the active power filter we can reduce the harmonics and maintain power factor unity. here we are using the hysteresis current controlled technique to generate the gating signals to turn on the inverter then inverter acts as a filter than it produces some compensating currents to canceled out the harmonics.