ABSTRACT This paper presents a seven levels inverter (MLI) used as 3Φ Modified Shunt Active Line Conditioner (MSALC) providing features of low harmonic distortion (low THD) and low Harmonic Current Ratio Factor (HCRF), reduced switching losses, suppressing harmonic currents, compensation of reactive power, enhancement of power factor, balancing load current under unbalanced non-linear load and distorted voltage conditions. It employs Self Tuning Filters (STF) for ideal (reference) current generation. Fuzzy Rule-Based (FRB) current controller generates switching patterns or sequence for Electrical potential source inverter. MATLAB fuzzy logic trainer toolbox is used for stimulating the proposed system. The effectiveness of the presented MSALC is desirable to suppress harmonics which is proved from the simulation results validated by experimental prototype hardware using the THD and HCRF values obtained which is not yet reported in other Shunt Active Line Conditioner (SALC) for various types of loads under both steady state and dynamic load conditions.