Most buildings and factories are supplied with electric power by three-phase four-wire low voltage electric distribution system. This method pollutes the neutral line and utility sources with harmonic currents. Today, development of power conversion technology and the popularization of computer cause the neutral current to become serious. In this paper, a novel three-phase four-wire active filter is proposed to solve these harmonic problems has two purposes. The first purpose of the proposed active filiter is that the phase current has a sinusoidal waveform shape under the nonlinear load. The second purpose of the proposed active filiter is that the current on the neutral line become zero under the unbalanced power source and under the varring load conditions. The ability of the shunt active filiter has been proved to be excellent through simulations under the varring load conditions.