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The development of new passive, active, and hybrid filtering techniques is important; and the issues of higher quality, reduced complexity, higher efficiency, and lower cost are important conditions that need to be addressed with regard to the expected stringent trends in power quality obligations. This paper suggests a new approach for the optimal sizing of hybrid active power filter (HAPF) parameters, which is presented for three-phase industrial power systems. Hybrid filter topology can be used to compensate harmonic currents, as well as for power factor corrections, without concern for importing and exporting harmonics, or simply the series and parallel resonance that may occur. The new trend in harmonic power filter design is not to obtain the best solution from a single objective optimization but to obtain a good compromise solution accomplished under other conflicting objectives. Fortran Feasible Sequential Quadratic Programming is used to determine the proposed filter optimal sizing to minimize the total voltage harmonic distortion as the main objective function, where maintaining the load power factor at an acceptable limit is desired. If the total harmonic voltage distortion achieves the specified goal, then the objective is redirected into minimizing the resultant voltage and current total harmonic distortions. The optimal design of the HAPF is analyzed by means of three case studies.