When　applying　parallel　active　power　filter　(PAPF)　to　the　power　transmission/distribution　system　that　contains　the　reactive　power　compensation　capacitors,　the　capacitors　can　influence　the　system　stability　and　the　compensation　performance　of　PAPF.　In　this　paper,　considering　the　influence　of　capacitors,　the　harmonics　compensation　and　resonance　damping　characteristics　of　PAPF　with　traditional　load　current　detection　methods　are　analyzed.　The　analysis　results　show　that,　when　capacitor　current　is　not　included　in　the　detected　load　current,　PAPF　has　ideal　performance　of　load　harmonics　compensation　and　parallel　resonance　damping,　but　has　no　effect　on　damping　series　resonance　and　compensating　harmonic　current　caused　by　supply　voltage　distortion;　when　capacitor　current　is　included　in　the　detected　load　current,　PAPF　with　traditional　control　method　can＇t　work　stable.　To　improve　the　system　stability　and　the　performance　of　PAPF,　a　novel　control　method　of　PAPF　is　proposed.　With　the　proposed　control　method,　PAPF　has　excellent　performance　for　harmonics　compensation　and　resonance　damping.　Finally,　experiment　results　are　presented　to　verify　the　analysis.