In this paper, a new control algorithm of series active power filter is proposed to reduce harmonic generated from nonlinear load in power system. In conventional control algorithm, harmonic current must be calculated firstly, and then compensation voltage was calculated by using the results but the proposed control algorithm can calculate compensation voltage directly. Compensating principle of proposed control algorithm is presented in detail. A combined system of series active filter and passive filter is composed in order to experiment. Experiment was carried out to verify proposed control algorithm of series active filter and experimental results are analyzed.