Along with increasing demand on improving power quality, the most popular technique that has been used is Active Power Filter (APF); this is because APF can easily eliminate unwanted harmonics, improve power factor and overcome voltage sags. This paper will discuss and analyze the simulation result for a three-phase shunt active power filter using MATLAB/Simulink program. This simulation will implement a non-linear load and compensate line current harmonics under balance and unbalance load. As a result of the simulation, it is found that an active power filter is the better way to reduce the total harmonic distortion (THD) which is required by quality standards IEEE-519.