This study presents an ac–dc–ac converter with eight controlled switches. The proposed topology is applied as a universal active power filter, compensating for disturbances in the grid voltage, voltage sags/swells, and harmonics generated by non-linear loads. The difference between the proposed and conventional solution is the addition of an uncontrolled leg (composed only of diodes) to increase the number of voltage levels, reducing harmonics and the average switching frequency. For performance comparisons, current total harmonic distortion (THD), voltage weighted THD, switching and conduction losses of the semiconductors, and average switching frequency were used as parameters. Control and pulse-width modulation techniques based on space vector approaches were developed to eliminate zero-crossing distortions caused by the use of the uncontrolled leg. Simulation and experimental results were presented for validation of the mathematical model.