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In this paper, a universal active power filter is proposed for harmonic and reactive power compensation in the single-phase to three-phase systems. The proposed configuration solves a typical problem found in remote (or rural) applications, where only a single-phase grid is available and there is a demand to supply three-phase loads. A suitable control strategy is presented to regulate the load voltage, the power factor, and to minimize the voltage and current harmonics simultaneously. Simulated and experimental results are also presented.