This paper presents a three phase shunt Active Power Filter (APF) for power quality improvements in terms of harmonics compensation. The compensation process is based on measure non-liner load currents and Active Filter currents, and then extract the references from measured currents. Measured currents are then transferred from abc frame to d-q reference frame. A Synchronous Proportional Integral controller (Synchronous PI controller) is used. The control signals then drive the Pulse Width Modulation (PWM) routine, where its output controls the Voltage Source Inverter (VSI) switching devices. The performance of the Active Filter and the Synchronous PI controller is validated though the simulink results in MATLAB environment.