This paper proposes a new hybrid static VAR compensator (SVC) with a series active filter (AF). The proposed hybrid SVC consists of a series AF and SVC. The series AF, which is connected in series to phase-leading capacitors in the SVC, performs for a resistor for source-side harmonic currents. A sinusoidal source current with a unity power factor is obtained with the series AF, although the thyristor-controlled reactor generates harmonic currents. A digital computer simulation was implemented to confirm the validity and high practicability of the proposed hybrid SVC using PSIM software. The simulation results demonstrate that sinusoidal source currents with a unity power factor are achieved with the proposed hybrid SVC.