Control of the LCL-type three-phase grid-connected converter is difficult due to high resonance peak of the LCL filter. Active damping is the state-of-the-art solution to this problem, but the damping performance will be affected by the inherent time delay of digital control, especially for high-power low switching frequency applications. Based on a discrete-time stability analysis of an LCL-type converter with capacitor-current-feedback active damping, a simple and effective time delay compensation method, which is based on area equalization concept, is proposed. The method can reduce the negative impact of the computation delay significantly. It has the potential to serve as a general solution to time delay compensation of a digitally controlled PWM converter. The validity of the proposed method is proved by experimental results.