In this paper, we study a series active power filter to compensate current harmonics and unbalanced source voltages. Conventional control methods for compensating unbalanced source voltages use source voltages to calculate compensation voltages, and in addition use load voltages to regulate load voltages. But the proposed control method uses load voltage to compensate unbalanced source voltages and regulate load voltages. And we propose a control method to reduce current harmonics which can calculate compensation voltages directly from source currents and load voltages. By well-matched operation of two control methods, the series active power filter can compensate current harmonics, unbalanced source voltages, and regulate load voltages. We compose a combined system of the series active power filter and parallel passive filters to confirm a validity of proposed control methods. The results from experiments are presented to demonstrate effectiveness of the proposed method.