This paper presents the design of neural networks compared with the conventional technique, a hysteresis controller for active power filter for three-phase four-wire electric system. A particular three-layer neural network structure is studied in some detail. Simulation and experimental results of the active power filter with both controllers are also presented to verify the feasibility of such controller. The simulation and experimental result show that both controller techniques can reduce harmonics in three-phase four-wire electric systems drawn by nonlinear loads and can reduce neutral current. The advantage of the neural network controller technique over hysteresis controller technique are less voltage ripple of d.c. bus, and less switching loss. Furthermore, the neural networks controller has better fault tolerance than the hysteresis controller. © 2002 Elsevier Science B.V. All rights reserved.