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In urban rail transit, there is a large number of harmonics brought by diode rectifiers, and shunt active power filters (APFs) are an effective method of harmonics rejection. Traditional shunt APFs work with a dedicated DC link leading to complexity, while those with a common DC bus but using non-isolated topologies bring serious problems of zero-sequence circulating current (ZSCC), which introduce losses and provoke poor quality. Consequently, this paper first analyzes the limitations of traditional non-isolated APFs on modulation radio. Based on the analysis, this paper put forward a novel isolated APF with a common DC link based on existing diode rectifiers in urban rail transit, which realizes braking energy recovery as an additional function. To this end, harmonics brought by diode rectifiers are reduced while rejecting ZSCC. Meanwhile, braking energy can feedback to the city grid with lower harmonics. Finally, simulation and experiment using a 1-kW prototype converter verify the feasibility and validity of the proposed converter on harmonics suppression and braking energy recovery.