Harmonic estimation is the main process in active filters for harmonic reduction. A hybrid Adaptive Neural Network–Particle Swarm Optimization (ANN–PSO) algorithm is being proposed for harmonic isolation. Originally Fourier Transformation is used to analyze a distorted wave. In order to improve the convergence rate and processing speed an Adaptive Neural Network Algorithm called Adaline has then been used. A further improvement has been provided to reduce the error and increase the fineness of harmonic isolation by combining PSO algorithm with Adaline algorithm. The inertia weight factor of PSO is combined along with the weight factor of Adaline and trained in Neural Network environment for better results. ANN–PSO provides uniform convergence with the convergence rate comparable that of Adaline algorithm. The proposed ANN–PSO algorithm is implemented on an FPGA. To validate the performance of ANN–PSO; results are compared with Adaline algorithm and presented herein