This paper presents the design, simulation, and hardware implementation of a Shunt Active Power Filter (SAPF) utilizing Synchronous Reference Frame (SRF) theory to effectively eliminate current harmonics in electrical systems. The SAPF, based on a Voltage Source Inverter (VSI) topology, was successfully simulated in MATLAB/Simulink and implemented in hardware using an ATmega microcontroller, demonstrating significant reduction in Total Harmonic Distortion (THD) levels. Results showed THD of 0.95% in simulation and 4.60% in real-time implementation, indicating the effectiveness of the proposed method in maintaining harmonic levels within acceptable limits.