The hybrid simulation concept consisting of a combination of computer simulation and laboratory tests. This approach is a cost effective alternative to physically testing the whole system and allows better understanding of complex coupled systems. This paper describes implementing an active power filter (APF) hybrid prototype where the source system and load are implemented as a real-time simulation and the system of static power converter acting as an active power filter is implemented in physical hardware. It also confirmed the hybrid simulation results by implementing the simulation in MATLAB-Simulink regarding the same system implemented during the active power filter analysis and design stage.