Abstract: Diode-clamped converter (DCC) suffers from an inherent problem of dc-link capacitor voltage imbalance. For the multilevel topology (> 3), by using conventional space vector pulse width modulation (CSVPWM), the balance of capacitor voltages cannot be attained for higher modulation index (> 0.55) while operating under unity power factor. Virtual vector pulse width modulation (VVPWM) ensures the balance of capacitor voltages for all operational conditions; however, compared to CSVPWM, the computational burden increases with the rapid increase of triangular regions for higher levels. To overcome this problem, a simplified virtual vector pulse width modulation (SVVPWM) algorithm for multilevel DCC was proposed in this paper. New virtual switching states were defined by combining two or more adjacent switching states, so that each virtual state had similar neutral point currents flowing through all neutral points, ensuring the natural voltage balance of DC-link capacitors under ideal and steady-state conditions. The proposed SVVPWM method simplified the sub-sector identification and duty ratio computation by converting the space vector diagram of any level converter to three-level space vector diagram. The simulation and experimental results of five-level DCC prove that the voltage balancing of DC-link capacitors can be achieved by using the proposed SVVPWM algorithm for the whole range of modulation index and load power factor.