It is worth to mention that Active Power Filters and Capacitor Banks are significant components for reactive power compensation and power quality management. Through the use of active power filters, power quality issues such as harmonics, and reactive power, can be actively controlled through real time technologies Ensuring this doesn’t get out of balance assists in painful modern applications that require high power quality. Capacitor Banks on the contrary are passive systems that support reactive power but are unable to provide sufficient self-adjustment to such static systems to take care of rapidly varying loads. It is important to appreciate these distinctions as they help in making informed choices in relation to the power system requirements.