This study proposes a Unified Power Quality Conditioner (UPQC) to minimize the power quality impact present in the matrix converter's instead of passive filter. A matrix converter produces significant harmonics and nonstandard frequency components into load. The proposed approach eliminates the total harmonic distortion efficiently and also mitigates sag swell present in matrix converter's load voltage. The smaller THD, the harmonic pollution in the power system will be reduced and the power quality will be increased. The proposed approach has been tested and validated on the matrix converter using MATLAB/Simuhnk software. The simulation results are shown to demonstrate the advantages of the proposed scheme. © Medwell Journals, 2011.