This paper presents the Hardware modeling and simulation of the Sliding Mode Controller (SMC), which is connected to a a nonlinear load. Bridge rectifier is used as a non linear load which generates the harmonic distortion near 30%.To reduce this distortion and to bring within the IEEE standard 519-1992, Shunt Active Filter(SAF) controlled by SMC is connected at point of common coupling. This method is used for tracking the errors of harmonic currents and given as the control input to generate reference signal for SAF. In the reference current tracking loop, a SMC is implemented for tracking the reference current, thus reducing the harmonic distortions. The system is simulated in MATLAB/ Simulink and also hardware module is designed for the same to justify the change in distortion. © Research India Publications.