This paper investigates a novel approach to power conditioning using a hybrid active/passive power conditioner and compares this to a traditional TCR and filter. The power conditioner is capable of compensating both fundamental and harmonic power quality disturbances. The use of a hybrid active/passive approach offers trade-offs between active and passive components, which may be explored further to optimize cost versus performance. The approach presented uses separate elements to control the fundamental and harmonics respectively. Harmonic control is achieved through traditional hybrid active/passive filter structures. The fundamental compensation is added to this in a way that utilizes the existing passive filter structure. A novel approach is presented using square-wave inverters and a coupling inductor. Analysis of the system shows that this requires smaller components than a traditional TCR approach and this may offer some cost advantages. The system operation is demonstrated using simulation.