This paper presents a Universal Active Power Filter (UAPF) for harmonic and reactive power compensation in the single phase to three phase system. The proposed configuration solves a typical problem found in remote (or rural) applications, where only a single-phase grid is available and there is a demand to supply three-phase loads. The universal active power filter, also known as the power line conditioner, consists of a combination of a series type and shunt type active filter topologies. Series active filters used to minimize harmonic distortion and disturbance of grid voltage. Shunt active filter used to minimize current harmonic and compensate reactive power. A suitable control strategy is presented to minimize the voltage and current harmonics simultaneously. The controller techniques are PI and Neural Networks controller. The model of a UAPF for single phase to three phase system is developed and the results are compared.