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This paper presents a novel and easy to implement control strategy for unified power quality conditioner (UPQC). The control strategy of parallel active filter (PAF) is based on Fourier transform theory, while the control circuit of series active filter (SAF) is based on positive sequence detection theory. Operating of PAF using this method compensates for reactive power and current harmonics, while operation of SAF compensates for imbalance, voltage harmonics and positive and zero sequence of utility voltages. The operation of control circuit has been explained using MATLAB software and simulation. The validity of control strategy is studied through simulation results.