This paper presents a universal active filter for harmonic and reactive power compensation with UPS (uninterruptible power supplies) features. The configurations does not use transformer in the series part. Transformerless modern UPS systems have been rapidly replacing the old technology due to their performance and size attributes. Reducing the numbers of passive elements and/or switches in active power filters and UPS topologies not only reduces the cost of the whole system but also provides some other advantages, such as great compactness, smaller weight, and higher reliability.