An adaptive dc-link voltage controlled LC coupling hybrid active power filter (LC-HAPF) for reactive power compensation includes: two dc capacitors to provide dc-link voltage; a three-phase voltage source inverter to convert dc-link voltage into compensating voltages; three coupling LC circuits to convert compensating voltages into currents; and an adaptive dc voltage controller with reactive power compensation control algorithm. The control algorithm includes: first, calculating required minimum dc-link voltage in each phase with respect to loading reactive power; three-phase required minimum dc-link voltage will be maximum one among their minimum values; compare it with predetermined voltage levels to determine final reference dc-link voltage. A dc-link voltage feedback P/PI controller outputs dc voltage reference compensating currents. An instantaneous power compensation controller outputs reactive reference compensating currents. The final reference compensating currents will be sum of them. A PWM circuit provides LC-HAPF adaptive dc-link voltage control and dynamic reactive power compensation.