The deviation of physical characteristics like current, voltage, and frequency in power systems affects the damage of electronic equipment with significant power loss. Power quality issues are resolved using filters like passive filters (PF) and active power filters (APF). The drawbacks of the PF and APF are resolved using Hybrid-APF. In this article, the Hybrid- APF (H-APF) is designed for harmonic reduction and power quality improvements using current compensation technique. The proposed H-APF has of 3Ф- AC Source connected in series with Non-linear load, Shunt-PF, and Shunt-APF. The Shunt-PF (S-PF) is connected in Series with Shunt-APF (S-APF) to form a Hybrid-APF. The compensation techniques include PQ-method/DQ Method and Hysteresis-Current- Controller (HCC) are used to reduce the harmonics from the Load. The complete model is designed using MATLAB Simulink and analyze the simulated voltage-current waveforms. The H-APF is compared with different filtering technique concerning THD and reactive power with improvements. The H-APF improves the THD of 5.76% over shunt–APF using PQ-Method. The H-APF using PQ-Method improves the THD over 69.54% than the H-APF using DQ-method.