This document presents a new control method for a shunt active power filter (SAPF) to compensate for unbalanced nonlinear loads and dissimilar line currents. The proposed control method uses both dq-theory and instantaneous p-q power theory to calculate reference currents. Fuzzy logic control is also used to optimize the SAPF performance. Simulation results show the controller is effective at mitigating harmonic distortion, compensating load asymmetry, and eliminating negative and zero sequence currents. The total harmonic distortion of the line currents is reduced from 29.8% to 4.1% with this control approach.