This paper presents an adaptive shunt hybrid filter aimed at mitigating harmonic distortions and providing reactive power compensation for variable speed induction motor drives. The filter combines shunt passive and active components, controlled by an artificial neural network (ANN) based digital controller, to effectively handle harmonic compensation under both steady-state and dynamic conditions. Experimental results demonstrate the filter's efficiency in improving power quality by reducing harmonics and maintaining a sinusoidal current waveform at the point of common coupling.