Increased power electronics-based nonlinear loads have harmed distribution system power quality. Variable speed drives, switched-mode power supply, and DC drives impair power quality and affect customers and utilities. Many variable-speed drives in the paper mill cause harmonic distortion, a power quality issue. This study investigates the impact of nonlinear electric drives on supply current distortion in Padmavati Pulp and Paper Mill, Ambarnath, Thane, India. Harmonic analysis is done at PCC, that is, at the secondary side of the transformer, with the help of a power quality analyzer fluke-434. Based on detailed analysis, a suitable harmonic reduction method is identified. passive filters, are the simplest solution for lowering harmonic currents but it has shortcomings like bulk size and cause resonance. In recent years active filter has been applied as an effective solution for harmonic reduction. This study suggests a hybrid filter as an economical solution to take advantage of a passive and active harmonic filter. This work present design and simulation of cascade H- bridge multilevel inverter-based hybrid filter for medium and high-power distribution system. The system for the case study is developed in MATLAB Simulink platform with suitable harmonic mitigation techniques and performance is evaluated in terms of total Harmonic Distortion Index (THDi).