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In this paper a comprehensive study on the three-phase four-wire (3P4W) shunt active power filter (APF) is carried out on the basis of three system configurations. These three two-level voltage source inverter topologies are compared for 3P4W shunt APF, namely, split capacitor (2C), four-leg (4L) and three single-phase H-bridges (3HB). The performance of all three topologies, under an unbalanced non-linear load condition, is evaluated with a detailed digital signal processor (DSP)-based experimental investigation. The steady-state as well as dynamic performance of APF is studied to compensate for current harmonics, reactive power, current unbalance and neutral current. The advantages and limitations offered by each of the topologies are also discussed in brief.