In distribution systems, the load abruptly rises or falls and behaves like a nonlinear load. As a result, the load draws nonsinusoidal currents from the alternating current mains, resulting in load harmonics, reactive power, and an excess of neutral currents, all of which pollute power systems. The fact that power technology devices do not work in a straight line and change states quickly causes the majority of pollution concerns in power systems. People believe that shunt active filters based on current-controlled PWM converters are the best option. This article discusses the harmonics and reactive power adjustment of a 3P4W microgrid distribution system with an IP-controlled active shunt. Based on offset orders, instantaneous currents or voltage signals in the time domain, this approach generates the required compensatory current extraction. Compensation in the time domain response is used because it is faster, easier to set up, and requires less processing resources than compensation in the frequency domain response