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Optimising the performance of power system networks using conventional methods is quite difficult because of the complex nature of systems that are highly non-linear and non-stationary. In this study a hybrid adaptive fuzzy hysteresis current controller for shunt active power filter (SAPF) is proposed. The conventional adaptive hysteresis concept is hybridised with fuzzy logic controller (FLC), which facilitates discarding of uncertainty in the system. In fact, conventional proportional-integral (PI) controllers for shunt active filter are based on a linearised model that fails to react under transient events. On the other side, FLC has widened its applicability to many engineering fields and offers satisfactory results for a wide variety of operating conditions. It helps in fulfilling the need for perfection, such as stability and robustness for every system. All this motivated to adopt FLC for SAPF applications. By incorporating an adaptive fuzzy hysteresis band, active power filter (APF) gains outstanding compensation ability under steady-state and transient conditions. To validate the proposed approach, the system is implemented on a real-time digital simulator and adequate results are reported for its verification.