Abstract As a superior modulation strategy, space vector pulse width modulation (SVPWM) provides redundant voltage vectors and adjustable action time, which can achieve multi‐objective control of modular multilevel converter (MMC). An SVPWM strategy suitable for MMC is proposed. The strategy is divided into three stages. In the first stage, the appropriate voltage vector, the action time and the basic sub‐module (SM) input number are quickly calculated to ensure the output quality by equating MMC as a 2‐level inverter. In the second stage, a finite set of the circulating current suppression is established on the basis of the basic SM input number. The optimal SM input number is selected through rolling optimisation. In the last stage, according to the SM voltage sorting and the optimal SM input number, the optimal switching state is determined to realise the SM voltage balance control. The proposed control strategy simplifies the design of the control system, reduces the computational burden and can be easily extended to MMC with any SM number. The simulation and experimental results show that the proposed SVPWM strategy can reduce the circulating current and balance the SM capacitor voltage while ensuring the output quality.