This paper proposes a novel current control strategy on active power filters using PQR instantaneous power theory which can compensate the line current harmonics and the neutral line current under the unbalanced and/or distorted source conditions in three-phase four-wire systems. The characteristics of the inverter ac filters are analyzed and a novel digital controller are proposed to overcome the inherent time delay problem in digital controllers with designed control gain in this paper. The proposed current control method is based on a sinusoidal PWM for fully-digital implementation compared with a conventional hysteresis PWM. PSiM simulation results verify the good performance of the proposed current control strategy on shunt type APFs.