Non-linear behavior of power semiconductor switch and non-linear load creates power quality problem in an ac to ac converter. These non-linear switches and load injects significant harmonic on Load side as well as on source side. In this paper an attempt has been made to reduce these harmonics using staircase PWM technique and passive filter. For load side harmonic mitigation, staircase PWM technique and for source side harmonic mitigation shunt passive power filters have been used. The simulation has been done using MATLAB software and results are used to evaluate the signal THDs.