SummaryThe modular‐multilevel converter (MMC) faces the problem of second order ripples in the sub‐module DC capacitor voltage during the low frequency operation at the load side. To sort out this problem, this paper demonstrates a three‐phase modified MMC that includes a novel circuit placed between upper and lower arms of each phase, where load is connected through proposed circuit. The aim of the proposed circuit is to reduce the magnitude of the ripples in each sub‐module's DC capacitor voltage; moreover, it also uses a less number of components compared with the conventional circuits. In order to keep the capacitor voltage at its rated value and to prevent the development of common mode voltage, the proposed circuit uses the high frequency‐based power transfer control channel for balancing power between the upper or top and lower or bottom arms. Furthermore, the mathematical analysis, operating principle, and proposed control is explained in detail for the conventional MMC and modified MMC. The simulation results have been obtained for the modified MMC with resistive load by using MATLAB and Simulink. An experimental test results have been verified with simulation results for the modified MMC topology.