In this paper, a novel adaptive hysteresis band current controller is proposed for active power filter to eliminate harmonies and to compensate the reactive power of three-phase rectifier. The novel adaptive hysteresis band current controller changes the hysteresis bandwidth according to modulation frequency, supply voltage, DC capacitor voltage and slope of the i(c)(*) reference compensator current wave. The hysteresis band current controller determines the switching signals of the Active Power Filter (APF), and the algorithm based on an extension of synchronous reference frame theory (d-q-0) is used to determine the suitable current reference signals. The results of simulation study of new APF control technique presented in this paper is found quite satisfactory to eliminate harmonies and reactive power components from utility current. All of the studies have been carried out through detail digital dynamic simulation using the MATLAB Simulink Power System Toolbox. The APF is found effective to meet IEEE 519 standard recommendations on harmonics levels.