Abstract: This study describes about a novel controller based hybrid power compensator is introduced for improving power quality of the network. The proposed system consist of tuned filter and D-STATCOM, it will reduces the %THD, reactive power and -ve sequence component of currents induced by utilization of non-linear loads and unbalanced loads. By introducing soft computing technique in controlling of STATCOM will results enhanced quality of power. The proposed system contains Adaptive Neuro-fuzzy Inference System (ANFIS) will respond fast with parameter deviation between reference, measure and reduction of distortions in fundamental component of currents to a greater extent.