Active damping and harmonic compensation are two common challenges faced by LCL-filtered voltage source converters. To manage them holistically, this paper begins by proposing a virtual RC damper in parallel with the passive filter capacitor. The virtual damper is actively inserted by feeding back the passive capacitor current through a high-pass filter, which indirectly, furnishes two superior features. They are the mitigation of phase lag experienced by a conventional damper and the avoidance of instability caused by the negative resistance inserted unintentionally. Moreover, with the virtual RC damper, the frequency region, within which the harmonic compensation is effective, can be extended beyond the gain crossover frequency. This is of interest to some high-performance applications, but has presently not been achieved by existing schemes. Performance of the proposed scheme has been tested in the laboratory with results obtained for demonstrating stability and harmonic compensation.