The electrical power distribution system is the part of a power system, which supplies electrical power to consumers for utilization. Recently the utilization of nonlinear loads has been increasing in distribution system which badly affected the sinusoidal output voltage waveform. Every consumer of electricity demand consistent and sinusoidal voltage waveform to run their loads properly but due to power quality issues such as harmonics, voltage sag, voltage swell, flickering, and interruption of power supply which badly affect the output voltage of the loads may result in equipment damages, and financial loss. This research study discusses the voltage harmonic which is one of the power quality problems. The harmonic is a Non sinusoidal waveform that is generated due to the applications of nonlinear loads which affect the power system reliability, increase the transformer losses, line losses, and frequent faults are generated which results in poor utility revenue, and reduction in production in industries. So, in this research study, the LC filter with a damping resistor is designed to improve the output voltage waveform. The MATLAB simulation model is developed to analyze the performance of the distribution system under linear and nonlinear loads with and without an LC filter circuit and also THD% is analyzed through FFT.