Active filters have been considered as a potential candidate to reduce the harmonics. In this paper, a fuzzy logic-controlled shunt active power filter capable of reducing the total harmonic distortion is developed. The optimal controllers for the control of DC voltage response of condenser and the inverter current of shunt active filter are designed by an artificial intelligence technique. The instantaneous p-q theory is used for calculating the compensating current. Fuzzy-adaptive hysteresis band technique is adopted for the current control to derive the switching signals for the voltage source inverter. The fuzzy-adaptive hysteresis band current controller changes the hysteresis bandwidth according to the supply voltage and the slope of the reference compensator current wave. A fuzzy logic-based controller is developed to control the voltage of the DC capacitor. Simulation results obtained are presented and compared with the conventional controller. Simulation results show the effectiveness of the proposed technique for harmonic reduction.