Unified Power Quality Conditioner (UPQC) is an effective device to solve the power quality problems. The UPQC is a combination of series and shunt filters which simultaneously compensate load voltage and source current imperfections. This paper presents harmonic mitigation using three level Neutral Point Clamped inverter based Unified Power Quality Conditioner. The use of three level Neutral Point Clamped converters allows a better performance of equipment by reducing harmonics and the ripple of the generated oltages and currents. The performance of UPQC in the reduction of harmonics is evaluated when employed with Multi carrier based SPWM and three level novel SVPWM techniques. Simulation results based on MATLAB/SIMULINK are presented to verify the effective compensation of harmonics using the two different modulation techniques.