This paper presents the performance of a parallel active power filter(PT) system in unbalanced load condition. The unbalanced load leads to negative sequence of current, and makes 120Hz ripple in the DC-link voltage forcing large capacitance and increases the rating of APF. thus, the separation of negative sequence is performed in synchronous reference frame and controlled to flow into supply network. The validity of the scheme is investigated through simulation and the experimental results for a prototype active power filter system rated at 10kVA.