As inverter-fed motor drives generate fast- voltage pulses, the transmission-line effects on long motor cable and motor stator windings lead to overvoltage on the cable and motor terminals, as well as inside motor stator windings, and also an increase in the common-mode current. Such phenomenon would cause premature failure of the motor and cable insulation. A general protective measure is the use of a passive ﬁlter, such as RC and RLC ﬁlter, to reduce the voltage surges by matching the cable impedance and/or altering the rise time of the voltage pulses. However, passive ﬁlter are bulky and lossy. This paper presents an active motor terminal ﬁlter with an energy recovery function that can achieve the same functions as the passive ﬁlter, but consumes much less power. The proposed ﬁlter recovers energy gained from suppressing motor terminal voltage surges and regenerating the recovered energy back to the whole system. An experimental ﬁlter has been built and evaluated on a 1-HP three-phase motor drive system. A comparative study into the performance among commonly used RC ﬁlter and RLC ﬁlter and the proposed ﬁlter will be given.