This paper proposes the importance of UPQC in the power quality of the distribution system with nonlinear load. The unified power quality conditioner (UPQC) is a power conditioning device, which is an integration of back to back connected shunt active power filter (APF) and the series APF to a common DC link voltage. It is necessary to mitigate the power quality issues in the distribution system in the presence of PV arrays. This paper deals with reduction of harmonic issues with the help of UPQC.