An adaptive neuro fuzzy based three phase four wire Shunt Active Power Filter is presented in this paper. The active power filter composed of asymmetric cascaded transformer multilevel converter and DC link capacitor. Under dynamic load conditions harmonic compensation and reactive power compensation can be achieved effectively. An ANFIS controller is designed to regulate voltage across DC link capacitor. The proposed method generates the compensation current reference which can handle reactive power requirement of non linear load and DC voltage regulation. Simulation results show fuzzy and ANFIS controller gives better harmonic compensation and DC link voltage regulation.