Harmonics in the power system is not new issue. This phenomenon has been introduced by technocrat throughout in the history of electrical power system. Maintaining the power quality in a power system is an essential assignment due to increase in wide variety of non-linear loads. The current drawn by such non linear loads are non-sinusoidal and therefore contains harmonics. Therefore, it becomes necessary to compensate these unwanted harmonics for better performance of the system. In this paper, a review of compensations of harmonics in distribution system has been explained.