<b>Reactive Power Compensation and Limiting Harmonic Current using Shunt Active Power Filter</b> In this paper, a shunt active power filter SAPF based on adaptive hysteresis band current controller HBCC is proposed for limiting the harmonics in load current and also compensate the reactive power for 3 phase non linear load. The HBCC calculate the active power and reactive power, transforms them in d, q and 0 components using Clarke’s transformation then calculates the compensating values of active and reactive power to inject them further in system. The HBCC determines the switching signals of the SAPF, and the algorithm based on an extension of synchronous reference frame theory d q 0 is used to determine the suitable current reference signals. The results of simulation study of SAPF control technique presented in this paper is found quite satisfactory to eliminate harmonics and reactive power components from utility current. Shunt active power filter, harmonics reduction, power quality, reactive power compensation 50-54 Issue-4 Volume-2 Zahid Hassan | Gagan Deep Yadav