A current source inverter (CSI) requires a capacitor filter for the commutation of switching device as well as for attenuating switching harmonics. Hence, the CSI-fed ac machine has a second-order system in the continuous time domain. This paper presents a design methodology for the closed-loop current controller of the CSI-fed ac machine drive system. A multiloop current controller design using a pole/zero cancellation method is employed with a transfer function matrix. To decouple the cross-coupling terms which cause mutual interferences between the d- and q-axes in the synchronous reference frame, two types of controller are proposed and implemented using different decoupling method. Additionally, active damping methods are incorporated to enhance the stability of the system. A stability analysis in discrete-time domain is investigated to verify the feasibility of the proposed closed-loop current controller. To evaluate the effectiveness of the proposed current controller, computer simulations and experimental tests were performed and the results are discussed.