A novel control strategy for three-phase shunt active power filter (SAPF) was proposed to improve its performance under non-ideal mains voltages. The approach was inspired by our finding that the classic instantaneous reactive power theory based algorithm was unsatisfactory in terms of isolating positive sequence fundamental active components exactly under non-ideal mains voltages. So, a modified ip-iq reference current calculation method was presented. With usage of the new method, not only the positive sequence but also the fundamental active current components can be accurately isolated from load current. A deadbeat closed-loop control model is built in order to eliminate both delay error and tracking error between reference voltages and compensation voltages under unbalanced and distorted mains voltages. Computer simulation results show that the proposed strategy is effective with better tracking ability and lower total harmonic distortion (THD). The strategy is also applied to a 10 kV substation with a local electrolysis manganese plant injecting a large amount of harmonics into the power system, and is proved to be more practical and efficient. A novel control strategy for three-phase shunt active power filter (SAPF) was proposed to improve its performance under non-ideal mains voltages. The approach was inspired by our finding that the classic instantaneous reactive power theory based algorithm was unsatisfactory in terms of isolating positive sequence fundamental active components exactly under non-ideal mains voltages. So, a modified ip-iq reference current calculation method was presented. With usage of the new method, not only the positive sequence but also the fundamental active current components can be quite isolated from load current. A deadbeat closed-loop control model is built in order to eliminate both delay error and tracking error between reference voltages and compensation voltages under unbalanced and distorted mains voltages. Computer simulation results show that the proposed strategy is effective with better tracking ability and lower total harmonic distortion (THD). The strategy is also applied to a 1 0 kV substation with a local electrolysis manganese plant injecting a large amount of harmonics into the power system, and is proved to be more practical and efficient.