The supply current is distorted by the nonlinear load such UPS, DC drives, AC drives and arc furnace. This current harmonics derates the electrical equipments. Thus the current harmonics are reduced from the supply line using Shunt Hybrid filter. The Hysteresis controller controls the active filter thus the supply current tracks the reference fundamental current extracted by the synchronous reference frame unit. So supply current is free from harmonics and also it provides harmonic compensation. The passive filter is tuned for the dominant harmonic frequency so it reduces the rating of the active filter. The total harmonic distortion and power factor of the supply current of three phase controlled rectifier load with filter and without filter is analyzed using MATLAB simulink and the results are presented.