This article proposes a three-phase three-level cascaded H-bridge (CHB) based shunt active power filter (SAPF) for the management of peak power demand and the mitigation of multiple power quality problems. The proposed topologies are controlled by a sliding-mode control (SMC) for robustness and better dynamic response. The SMC is designed by mathematical modeling of SAPF. The proposed three-level SAPF for the three-wire system is developed by using three H-bridges and three coupling inductors. The same topology can be extended to the four-wire system without using any additional switches. The management of peak power demand of load is achieved by connecting batteries with the dc-link of the H-bridges. The three-wire topology can be used for harmonic mitigation, power factor correction, and compensation of current unbalances. The proposed topology in the four-wire network is required to suppress the neutral current flow in addition to the abovementioned power quality problems. The performances of proposed topologies are verified through MATLAB/ Simulink and validated through the experimental prototype developed in the laboratory.