This document describes a proposed Adaptive Neuro-Fuzzy Inference System (ANFIS) based Unified Power Quality Conditioner (UPQC) to improve power quality compensation performance. A UPQC uses two voltage source inverters to compensate for both voltage and current disturbances but has high DC link capacitor discharge times. The proposed system adds an ANFIS device to generate a bias voltage that maintains the DC link voltage at a lower level. ANFIS combines neural networks and fuzzy logic to approximate nonlinear functions from numerical and linguistic data. The generated fuzzy rules are trained using a neural network to produce the desired output. Analysis shows the proposed ANFIS-based UPQC provides better power quality compensation than controllers using neural networks,