Abstract: When modular multilevel converter（MMC） is applied in DC distribution network, due to the limitation of existing modulation strategy, it can not take into account of voltage quality and operation loss, which hinders its promotion in DC distribution network. This paper proposes a hybrid modulation strategy of nearest level modulation（NLM） and PWM（NL-PWM） for MMC in full level（FL） mode（FL-NL-PWM） in DC distribution network. In this strategy NL-PWM is extended to full level mode to make the output level double and improve the voltage quality. With the help of bridge arm reactor and circulating current suppression strategy, the circulating current level and that in the basic level mode are not different, and no additional loss is added. Results of the simulation based on MATLAB/Simulink show that FL-NL-PWM,with the advantages of high voltage quality, simple control, low operation loss and expansibility, provides a new solution for extending MMC to DC distribution network.