In this paper, a combination of an active power filter (APF) parallel with a passive power filter (PPF) named shunt hybrid active power filter (SHAPF) is studied to compensate reactive power, harmonic and unbalanced current, which combines the advantages of APF and PPF. Comparing to the previous researches, this study is focused not only mainly on the compensation range, but also its compensation performance. With the SHAPF topology and proposed control method in this paper, the advantages of PPF have been kept with low capacity and the compensation range has been widened compared with the traditional APF. In this study, theoretical and simulation results show that SHAPF can enlarge the APF compensation range and lower required capacity of the APF system. Finally, its initial and operational cost can be lower comparing with traditional APF system along.