A new hybrid active power filter, composed of passive power filters and active power filter, is proposed for harmonic suppression and high capacity reactive power compensation. A kind of configuration of the hybrid power filter has been presented and its basic principle is addressed, furthermore, the design of passive power filters and the analysis of harmonic current injected by active power filter are given in detail. Recursive integral combined with fuzzy controller is proposed to control the current and they are all implemented on a DSP-based controller. Simulation and industrial application results have shown the effectiveness of the proposed injection type hybrid active power filter and control methods, it can meet the demand of major industry to suppress harmonic and compensate reactive power to save the energy.