A new method for harmonic suppression and reactive power compensation which is integrated with converter transformer is proposed to deal with the oversize problems of transformer and harmonic filter system in the cases where physical space is of limit. Based on the presented non-orthogonal decoupling mechanism, the integrated filter is designed and constructed. In this paper studies are performed on the decoupling effect, the inductor winding linearity and inductance computation, and the harmonic reduction and reactive power compensation performance of the described integrated filter. Simulation and experimental verifications of an integration converter transformer prototype are provided.Index Terms-integrated filter, non-orthogonal decoupling, converter transformer, harmonic suppression and compensation