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This paper proposes a novel control strategy for three-phase active power filter based on Lyapunov's stability theory. First, the active power filter is modeled in the stationary abc frame and then the model is transformed to the rotating dq frame with the aim of reducing the control complexity. Then we form an energy-like Lyapunov function and determine the control law that makes the time derivative of the function always negative for all values of the states. At last we give the results of the simulation using the proposed control law. Simulation results clearly show that the proposed controller has a better performance compared with commonly used controllers.