ABSTRACTIn the case of undistorted and balanced grid voltages, low ratio shunt active power filters (APFs) can give unity power factors and achieve current harmonic cancellation. However, this is not possible when source voltages are distorted and unbalanced. In this study, the cost-effective hybrid active power filter (HAPF) topology for satisfying the requirements of harmonic current suppression and non-active power compensation for industry is presented. An effective strategy is developed to observe the effect of the placement of power capacitors and LC filters with the shunt APF. A new method for alleviating the negative effects of a nonideal grid voltage is proposed that uses a self-tuning filter algorithm with instantaneous reactive power theory. The real-time control of the studied system was achieved with a field-programmable gate array (FPGA) architecture, which was developed using the OPAL-RT system. The performance result of the proposed HAPF system is tested and presented under nonideal supply voltage conditions.