This paper suggests a control algorithm of 3-phase 3-wire series active power filter. This suggested algorithm can compensate source harmonics and reactive power in 3-phase 3-wire power distribution systems. These harmonics are generated by nonlinear loads such as diode rectifiers and thyristor converters. This control algorithm extracts a compensation voltage reference from performance function without phase transformation. Therefore, this control algorithm is simpler than any other conventional control algorithms. 3-phase 3-wire series active power filters which have a harmonic voltage source and a harmonic current source are manufactured and experiments are carried out to verify the effectiveness of suggested control algorithm.