This paper presents a new device for the compensation of common-mode (CM) disturbance in induction motor drives, based on the active cancellation approach. The detailed design and the experimental implementation issues of the new active compensation device for a 380-V/50-Hz pulsewidth-modulation (PWM) induction motor drive are discussed. Starting from the idea of the active common-noise canceller, the proposed active compensation device is suitably improved in order to overcome the limitations of similar previously proposed circuits. In fact, it can be successfully used within a drive system with a rated voltage of 380 V or higher by employing an improved active circuit with a dedicated dc power supply derived from the ac power supply line. In addition, the design follows the criteria of compactness and minimum cost. The performance of the realized active compensation device is verified through experimental measurements of the CM voltage, the CM current, and the motor shaft voltage. The effectiveness of the proposed solution is demonstrated by experimental results.