Harmonics lead to premature ageing of the electrical Installation. Excessive amount of harmonics must eliminate for economic reasons. The utility company impose penalties on users due to this fact. Harmonic pollution may disturb equipment in other plants. Assessment of emission limits for disturbing loads in MV and HV power systems.rnOur project is based on the design of Active Power filter along with the use of some passive elements to eliminate the harmonics in the power system. Our proposed scheme has been designed in MATLAB/SIMULINK environment showing various performance measures.