This paper presents a new control scheme for a single-phase PWM rectifier with Auxiliary Current Injection Circuit (ACIC) to improve the load transient response and DC bus voltage controller bandwidth. The PWM rectifier and ACIC are controlled to mitigate the 2nd harmonic ripple in the DC bus under steady-state as well as the peak undershoot and overshoot during load transients. Analytical equations governing the operation of the single phase PWM rectifier with proposed ACIC controller are derived and presented. The proposed controller is designed and simulated using MATLAB Simulink and implemented on a 100 W test setup. The simulation and experimental results are presented to validate the performance of proposed controller. © 2016 IEEE.