This paper describes a single-phase active power filter based on a newly developed digital controller. The developed controller utilizes FFT(Fast Fourier Transform) algorithm to extract the reference signal from the load current, considering the phase-angle delay of each order of harmonics. Optimized technique was applied for whole control algorithm to implement the real-time operation of developed controller. The performance of developed controller for a single-phase active power filter was verified through computer simulations with PSCAD/EMTDC. The feasibility of hardware implementation was confirmed by building and testing a prototype. The developed digital controller for a single-phase active power filter can compensate the harmonic current generated by the power supply for digital equipment.