AbstractIn order to harmonic propagation phenomenon damping, active power filters are installed on distribution systems.The installation of active power filter on buses, may itself cause harmonic propagation. The purpose of this paper is analyse the harmonic propagation also discuss the installation effect of a voltage-detection-based shunt active power filter that acts as a harmonic terminator. In order to meet this target because of the uncertain and variable nature of characteristic impedance,Zc, It is necessary to use active power filter with automatic gain adjustment. According to voltage harmonics detected at its installation bus, the active filter can adjust its control gain, keeping the voltage harmonics lower than a specified level, even if the characteristic impedance of the distribution line is unknown. In this paper, an automatic gain adjustment for active filter is designed based on keeping and controlling of total harmonic distortion in the allowable limitation according to IEEE-519 Std. Other features and benefits of using automatic gain adjustment are reduction of compensating current and hence losses reduction that these two results in reduction of the cost of active power filter. Finally the advantage of this controller compared with similar studies is simplicity, and its remoteness from the usual complexity.