A new low cost hybrid active filter for thyristor-controlled rectifier load is presented to overcome the high cost problem of the active or the other hybrid active filters. The proposed hybrid active filter which consists of tuned (5th and 7th harmonics) LC passive filters, power factor improvement(PFI) capacitor bank, and active filter compensates power factor as well as harmonic currents. Since most of harmonic currents are filtered by the passive filter and most of reactive power is compensated by the PFI capacitor bank, the power rating of active filter can be minimized, resulting in cost minimization of the proposed hybrid active filter. A 300kVA hybrid active filter system is implemented and tested using 1MVA thyristor rectifier load to verify the operation and performance.