Power quality of the system will be affected due to the increasing use of power electronic equipment and nonlinear loads. Active Power Filters (APF’s) are effective in mitigating line current harmonics and can improve the power quality. In this paper, instantaneous active and reactive power (p-q) theory is employed to generate the reference currents and PI controller is used control the DC link voltage. The application of artificial intelligence is growing fast in the area of power sectors. The Artificial Neural Network (ANN) is considered as a new tool to design control circuitry for Power-Quality (PQ) devices.