In this paper, load compensation techniques under unbalanced and distorted voltages have been discussed. Two kinds of compensation methods are considered. In the first category, synchronous detection and modified equal current strategies are used under the unbalanced but sinusoidal source voltages. In the second method, load compensation based on instantaneous symmetrical component theory with positive sequence extraction is proposed and is shown to work under unbalanced and the non-sinusoidal source voltages. To support the proposed method, a 440 V (L-L) three-phase, four-wire distribution system is considered. The compensator is realized using a three-phase voltage source inverter (VSI) operated in the current control mode. Detailed digital simulation and experimental results are presented to validate the approach. © 2006 IEEE.