In this paper, a simplified control algorithm for a three-phase, four-wire unified power quality conditioner (UPQC) is presented to compensate for supply voltage distortions/unbalance, supply current harmonics, the supply neutral current, the reactive power and the load unbalance as well as to maintain zero voltage regulation (ZVR) at the point of common coupling (PCC). The UPQC is realized by the integration of series and shunt active filters (AFs) sharing a common dc bus capacitor. The shunt AF is realized using a three-phase, four leg voltage source inverter (VSI) and the series AF is realized using a three-phase, three leg VSI. A dynamic model of the UPQC is developed in the MATLAB/SIMULINK environment and the simulation results demonstrating the power quality improvement in the system are presented for different supply and load conditions.