This paper presents an analytical design method of a passive harmonic filter for a three-phase diode rectifier and uses a new transfer function approach in the analysis and design. The transfer function approach derives an analytical formulation of an utility system including passive filters with a basis of Laplace transform and provides a graphical formulation so that a visualized insight into an interaction between individual filter and system response can be attainted. Harmonic impedance, voltage division and current division transfer function are used as a design tool, which makes a calculated filter parameters to satisfy IEEE-519 distortion limits. A simple five-step design procedure is introduced in the filter design, which consists of system analysis, selection of PCC(Point of Common Coupling), filter specification calculation, appropriate filter design for system and filter implementation. Philosophy governing the design procedure is based on a numerical/graphical iterative solution, trial and error with visualization feed-back based on "algebra on the graph". Finally, performance of the designed passive harmonic filter is verified by experiment and shows that 5th, 7th, 9th, 11th and 13th harmonics are decreased within IEEE-519 distortion limits, respectively.