Use of power electronic-based load has increased in the resent decade. These loads draw non-sinusoidal currents and voltages from the utility supply generating harmful harmonics. Injection of harmonic currents and voltages into the utility supply affect the utility supply systems and customer’s equipment connected at point of common coupling. Issues of power quality has become an important issue for both users and distributers of electrical power. Active power filters have proven to be efficient method for power quality improvement and reactive power compensation for issues related to harmonics. This work present approach for shunt active filter compensation of harmonics. The different traditional and modern harmonic solutions topologies are presented. Shunt active power filter as the most famous and used active filter type is introduced. The generation of reference signal and control of shunt active filter studied. Deadbeat control methods of APF in addition to PI controller used for DC link voltage control is presented. Three phase three wire system supplying nonlinear load is used to test performance of the proposed filter. It is implemented in MATLAB\Simulink and results discussed.