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Harmonics cause major problems in power systems due to non linear loads. With the rapid growth in the utilization of rectifiers for critical loads, e.g. in computer or medical equipment, the need for high quality uninterruptible power is increasing. Non-linear current drawn by the rectifier loads distort the output of a UPS system. Mainly because of the output filter impedance in a UPS. A distorted output voltage will result in reduced DC-bus voltage or rectifier loads and may lead to excessive losses and heating. The main objective of this thesis is to eliminate harmonics and reduce the power loss in inverters. The harmonic separation process is implemented with a processor and achieves low THD using blind signal separation. It is mostly used in medical instrumentation and medical applications like ECG and EEG.