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Harmonics pollution is very dangerous in medium power applications. Generally, harmonics are produced in the system due to the connection of nonlinear loads. This article presents a novel load voltage and current harmonic compensation, voltage sag and swells compensation approach using hybrid UPQC. The proposed synchronous reference controller uses the Carrier Pulse Width Modulation (CPWM) technique for the proper control of UPQC. The simulations are carried on Matlab/Simulink platform. The output results present the proposed hybrid UPQC compensates the load current harmonics, voltage sag and swell effectively. The load voltage harmonics are reduced from 11.65% to 1.53% and the current harmonics are reduced from 30.97% to 2.24% respectively.