Abstract: Shunt Hybrid Active Power Filter(SHAPF) can compensate the harmonics generated by the harmonics source of current source type well. The AC side’s inductance and the DC side’s capacitance of the SHAPF play a very important role for compensation effect of system. Based on the theory analysis, the paper argued the model of SHAPF and simulation by using the power system toolbox of MatLab. The simulation experimental results showed that the harmonics and reactive current of the power system could be compensated well by SHAPF.