Adjustable speed AC drives with low input current THD are becoming increasingly important in industry. This article has detailed the implementation of a parallel active filter, which is integrated within a 450 kW adjustable speed drive to provide an overall system which conforms to IEEE 519, and which provides significant benefits on a system level. The design of the active filter is seen to be driven by overall system specifications which include input current THD, efficiency, displacement power factor, a high level of integration with the load converter, and cost targets. Active filter operation and control has been analyzed at a detailed level, and fundamental issues relating to current regulator topology and operation, limits on compensation capability, DC bus control, switching frequency ripple suppression, etc., have all been addressed, and have all been shown to be very important in terms of helping the system meet its performance objectives. The overall drive system including the active filter, meets IEEE 519 by reducing the supply current THD from 26.8% without the active filter to 4.1% with the active filter operating. This is achieved in presence of supply voltage THD of 2.3% and filter terminal voltage V/sub f/ unbalance of 1.3% and, includes an ASD load induced subharmonic component at 33 Hz. Further, individual harmonic limits are met up to the 35th harmonic.