Nowadays, power quality issues one of the major problems in transmission and distribution system due to the constant increase of nonlinear loads linked to the electrical network. This paper presents the design and development of space vector modulation based three phase two leg simplified h -bridge operated as unified power quality conditioner system for compensating sag/swell, over voltage, under voltage, interruption, electrical noise. The series and shunt active power filters are used to compensate voltage and current related power quality issues. The conventional system utilizes more number of power electronics switches to compensate the power quality issues. Furthermore it  will cause more switching losses. To overcome these problem SVPWM based three phase two leg simplified H-bridge is proposed. The performance of the proposed SVPWM based UPQC system is validated through simulations using MATLAB/SIMULINK and compared with the existing techniques such as hysteresis controller based UPQC.