Shunt Hybrid Active Power Filter (SHAPF) can improve the performance of passive filter and realize harmonics restraint and reactive power compensation in big power situation. The principle and speciality of Shunt Hybrid Active Power Filter is analyzed by establishing single-phase equivalent circuit of SHAPF in the paper. A design method of main circuit is presented by studying the scheme of main circuit. It includes design of power filter, design of coupling transformer, design of output filter and design of control strategy of active power filter. Simulation model is established based on MATLAB/Simulink, and the parameters of simulation model are presented. Finally, the simulation results are shown. The simulation result indicates the Shunt Hybrid Active Power Filter can improve the performance of passive filter and verifies the good compensation characteristics of the hybrid power compensator.