With the goals of a better power factor and reduction in energy use, variable frequency drives (VFDs) have been standardized in various industrial applications including Heating, Ventilation, and Air-conditioning (HVAC) systems. However, key issues related to the deterioration in the power quality associated parameters (voltage harmonic distortion and current harmonic distortion) due to the growing number of VFDs demand a wholesome analysis of the problems faced by the users. In this present work, an analysis has been performed to investigate the potential impact of using alternating current (AC) line reactor and direct current (DC) link choke combination on harmonic mitigation in a VFD driven water-cooled centrifugal chiller compressor. Using a combination of AC line reactor and DC link choke as one of the low cost solutions in harmonic mitigation of a VFD driven load in HVAC systems can be decided based on the investigation done in this research work.