Abstract: One of the major power quality concerns in modern times is the problem of current harmonics. The current harmonics is caused due to the increase in non-linear loads which is largely dominated by power electronics devices. The Shunt active filtering is one of the best solutions for mitigating current harmonics. This paper describes a fuzzy logic controller based (FLC) based three Phase Shunt active Filter to achieve low current harmonic distortion (THD) and Reactive power compensation. The performance of fuzzy logic controller is analysed under both balanced sinusoidal and unbalanced sinusoidal source condition. The above controller serves the purpose of maintaining DC Capacitor Voltage constant. The proposed shunt active filter uses hysteresis current controller for current control of IGBT based PWM inverter. The simulation results of model in Simulink MATLAB reveals satisfying results.