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The unified power quality controller (UPQC) plays an important role in the constrained delivery of electrical power from a source to load. This paper presents Artificial Neuro Fuzzy Interference System (ANFIS) technique is proposed. This approach eliminates the total harmonic distortions (THD) efficiently, and mitigates sag, swell and reactive power compensation present in the linear and nonlinear loads. The system performance compared with Proportional Integral (PI) controller and Fuzzy Logic Controller (FLC) and also the system performance is also verified experimentally.