This paper proposes a shunt active filter to mitigate the power quality issues like unbalanced load current during nonlinear load. The proposed shunt active filter is constructed with the combination of cascaded H-Bridge multilevel inverter for achieving reduced %THD along with multiband hysteresis controller for accurate tracking of the reference signal followed by switching pulse generation for the MLI. The time domain based SRF controller is utilized for precise estimation of the reference signal. To authenticate the dynamic performance of the proposed shunt active filter, a test system is modeled in MATLAB / Simulink.