The main objective of this project is to make the total input current drawn from the three phase ac main as sinusoidal, by compensating reactive power and low order harmonics generated by the three phase non-linear loads. The synchronous d-q-o reference frame algorithm is also been implemented to recognize and extract harmonic distortions. The outcome will be Total Harmonic Distortion free supply mains. such that the input current will be compensated.The filter is used to counter the effects of harmonics on three-phase power distribution systems and thus improve the system power quality. Technologies Used: MATLAB, Micro Controller, KIEL.