In this paper, a subband filtering and adaptive prediction technique for analyzing harmonics in power systems is presented. In this method, the filter banks are designed to decompose odd and even order harmonics separately. The adaptive prediction has been employed reduce the transient and white noise effect in time varying harmonics detecting and tracking. The frequencies and amplitudes of the decomposed harmonics are estimated by recursive algorithm. To demonstrate the performances of the developed technique, computer simulations to the signal with the time-varying frequency and THD are carried out.