In today's scenario most of the residential load has nonlinear characteristics. This paper studies the harmonic impact of a typical modern residential load. The power consumption and total harmonics distortion (THD) pattern of each load has measured. The power factor is not an appropriate indicator to compare different load. To compare the impact of different loads a combination of reactive power, harmonic current and rms current is better alternative for analysis of power quality. Proper location of filter has been selected on the basis of measured data to enhance the power quality in residential system.