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A novel filter for use in three-phase power systems is introduced. When the input to the filter is a balanced three-phase set of signals, the filter suppresses noise and distortions and extracts a smooth three-phase fundamental component. When the input signal to the filter is unbalanced, it extracts the fundamental positive-sequence component of the input signal. The filter also estimates the magnitude, phase angle, and frequency of the signal and adaptively follows the variations in all these three variables. The characteristics of the filter, including its mathematical equations, stability analysis, steady state, and dynamic responses, are discussed in this paper. The filter highly attenuates the harmonics, unknown interharmonics, and distortions. However, an extension of the filter for full removal of harmonics and unknown interharmonics is also presented, and its operating principles are discussed. The structural simplicity and robustness of the filter make it desirable for power system applications. In addition to the wide applications in power systems, it can specifically be used as an adaptive antialiasing filter for three-phase applications.