The power electronics device which converts DC power to AC power at required output voltage and frequency level is known as inverter. Inverters can be broadly classified into single level inverter and multilevel inverter. Multilevel inverter as compared to single level inverters have advantages like minimum harmonic distortion, reduced MI/RFI generation and can operate on several voltage levels. A multi-stage inverter is being utilized for multipurpose applications, such as active power filters, static var compensators and machine drives for sinusoidal and trapezoidal current applications. The drawbacks are the isolated power supplies required for each one of the stages of the multiconverter and it’s also lot harder to build, more expensive, harder to control in software. This project aims at the simulation study of three phase single level and multilevel inverters. The role of inverters in active power filter for harmonic filtering is studied and simulated in MATLAB/SIMULINK. Firstly, the three phase system with non-linear loads are modeled and their characteristics is observed . Secondly, the active power filters are modeled with the inverters and suitable switching control strategies ( PWM technique) to carry out harmonic elimination .