his paper presents a method for obtaining the desired reference current for Voltage Source Converter (VSC) of the Shunt Active Power Filter (SAPF) using Synchronous Reference Frame Theory. The method relies on the performance of the Proportional-Integral (PI) controller for obtaining the best control performance of the SAPF. To improve the performance of the PI controller, the feedback path to the integral term is introduced to compensate the winding up phenomenon due to integrator. Using Reference Frame Transformation, reference signals are transformed from a − b − c stationery frame to 0 − d − q rotating frame. Using the PI controller, the reference signals in the 0 − d − q rotating frame are controlled to get the desired reference signals for the Pulse Width Modulation. The synchronizer, the Phase Locked Loop (PLL) with PI filter is used for synchronization, with much emphasis on minimizing delays. The system performance is examined with Shunt Active Power Filter simulation model