The proposed shunt active filter compensate for balance and unbalanced nonlinear load currents, adapt itself to compensate variations in nonlinear load currents, and correct power factor of the supply side near to unity. Proposed Active Power Filter (APF) topology limits %THD of source current under limits of IEEE-519 standard, and also have been observed that reactive power compensation has improved leading to power factor improvement. After checking the performance of the system for various load conditions with the above said list of control strategies, the hybrid filter / control technique is observed as more adoptable for the system in order to ensure the improved power quality. The validity of the presented controllers was proved by simulation of a three phase four wire test system under balanced, unbalanced and variable loading conditions. Finally all the control strategies are compared and the results are found to be quite satisfactory to mitigate harmonic Distortions, reactive power compensation and power factor correction.