In this paper, the structure, modeling, parameter design, and control method are proposed for a new hybrid structure of a static var compensator in parallel with a hybrid active power filter (SVC//HAPF). The SVC part of the SVC//HAPF is used to dynamically compensate the reactive power. And, the HAPF part is used to provide harmonic power and small amount of reactive power compensation. Due to the large fundamental voltage drop on coupling the LC part, the active inverter part of the SVC//HAPF has low voltage rating. Meanwhile, the parallel-connected SVC acts as a current divider to reduce the active inverter current. Therefore, the proposed SVC//HAPF shows the great promise in compensating harmonic current and wide-range reactive power with a low (both) voltage and current rating active inverter part. To show the advantages of the proposed SVC//HAPF, simulation comparisons among the active power filter (APF), HAPF, SVC in series with HAPF (SVC-HAPF), and the proposed SVC//HAPF are provided. Finally, experimental results based on the laboratory-scaled hardware prototype are given to show the validity of the SVC//HAPF.