Ensuring the quality of power supply is a main target of the power utility companies worldwide. Harmonic distortion is one of the power quality problems that can result either from upstream (utility side) through background harmonic, downstream (customer's side) through non-linear loads, or renewable energy generators. The detection of harmonic sources at the point of common coupling (PCC) is a major concern for both utilities and customers. Various methods have been proposed since the 1990s to be used for harmonic source detection. These methods have been classified into three categories based on the direction of active power flow, reactive power, and voltage-current ratio. In this paper, a systematic literature review is done on the state of the art of current research on the harmonic source detection methods, in order to select the method that gives better practical and commercial results to be used when multiple customers are connected at the PCC. This systematic literature review recognized that most studies concentrated only on harmonic source detection between a customer and utility but the practical power system has multiple customers connected to the PCC with different load conditions. Therefore, the results obtained from this paper review will be useful for researchers and engineers working in the modern grids, who aim to develop a practical and commercial method to quantify the harmonic contribution for different customers and utility.INDEX TERMS Harmonic distortion, harmonic source detection, renewable energy sources and distributed power generation.