Nonlinear loads, a crucial component of power systems grids, pose a challenge due to harmonics injection. Our research tackles this issue with a novel approach - a modified green plug / switched filter compensation scheme using fuzzy logic controllers. This innovative scheme, presented in the paper, utilizes dual action pulse width modulation to ensure switching functions from harmonic reduction and capacitive compensation for inrush nonlinear type AC loads. The scheme's multi-loop regulations and online switching effectively handle dynamic type slow acting inrush, motorized and other rectifier type-nonlinear loads, enhancing power factor, power quality at source and load buses, and reducing total harmonic distortion at key source and sensitive nonlinear load buses. A simulation model in the MATLAB/SIMULINK software environment demonstrates the efficiency of the proposed FACTS technique. The results show that voltage, current, active power, reactive power, power factor regulation, and effective energy utilization are achievable with the designed FACTS-MFCC-SFC. The switched modulated AC green plug filter significantly improves power quality and enhances power factor in the case of inrush and nonlinear loads.