A new kind of resonant impedance type hybrid active filter (RITHAF) is proposed for dynamic harmonic current suppression and high capacity reactive compensation in medium and high voltage systems. This paper analyzed the different performance of the RITHAF when the active part of the RITHAF is controlled as a current source and as a voltage source, respectively. The harmonic suppression function is defined in this paper. The influences of the changes caused by the grid impedance and the detuning of the passive power filter on the compensating characteristics of the RITHAF are studied by analyzing the suppression function. Simulation and industrial application results show that the RITHAF has excellent performances in harmonic suppression and reactive compensation, which is suitable for medium and high voltage systems.