A Lyapunov-function-based control strategy for NPC-SAPF was proposed. The mathematical model of NPC-APF was built, and Lyapunov energy function including the tracking error of compensation currents and DC voltage was also constructed. Characteristic equation including control permanents was derived and plotted. Linear range of control permanents were also obtained after the overall consideration of system globally asymptotically stable conditions and pole location. Error feedback control technique was then utilized to keep neutral point potential balanced. In order to verify the compensation performance of the proposed current control scheme, nonlinear loads including diode bridge rectifier with an inductive load and a capacitive load was simulated and tested. Simulation and experimental results show that the proposed control strategy is effective in the nonlinear loads of both current-source type and voltage-source type.