This document summarizes a novel compensating technique for improving power factor in power electronic systems. The technique uses vector control implemented on the supply side to regulate the in-phase and quadrature components of supply current. Simulation results show that with the proposed compensator, the system draws a leading current even with non-linear loads, improving the power factor. The total harmonic distortion is also reduced significantly to only 0.7%, compared to over 90% without compensation. Simulation waveforms verify the power factor and THD improvements over conventional uncompensated and statically compensated systems.