In this paper, a new hybrid active power filter using a voltage-source power converter with a series connected inductor and capacitor set is proposed. The power converter is controlled to produce a voltage proportional to the harmonic component of the load current. The compensating current flows into the power feeder via the series connected inductor and capacitor set and suppresses the harmonic currents generated by the nonlinear loads. The advantages of the proposed filter are low voltage rating of dc capacitor and power switches, smaller inductor, and low Electro Magnetic Interference.