High modularity, easy scalability, and superior harmonic performance, comprising the topology with the most potential for medium- to high-voltage high-power applications, are representative features of a modular multilevel converter (MMC). Each application of a MMC requires a proper scheme such that it conforms to control objectives such as correct submodule capacitor voltage balancing control and the suppression of circulating current. Over the past few years, various studies have been presented that meet the MMC requirements through both classical control-based pulse-width modulation and model predictive control, although some drawbacks exist for both control concepts. The dynamic performance of the classical control methods with proportional-integral or proportional-resonant controllers is unsatisfactory, and the requirement of proportional-integral parameters tuning procedure makes converter operation performance depends on proportional-integral parameters adjustment. Meanwhile, model predictive control performance depends significantly on the mathematical model of a system, and weighting factor selection is tedious. In this paper, we propose an improved phase-shifted carrier pulse-width modulation method and capacitor voltage balancing control that inherits the merits from both classical control and model predictive control. Meanwhile, the proposed control method eliminates the requirement of the tedious proportional-integral parameters tuning procedure and improves the dynamic performance compared with the conventional phase-shifted carrier pulse-width modulation-based proportional-integral controller method. Simulations and experiments were conducted to demonstrate the proposed method's properness.