This paper proposes a new improved Γ-Z-source inverter that overcomes the drawbacks faced by the conventional Γ-Z-source inverter. The improved Γ-Z-source inverter provides continuous input current and higher voltage gain compared to the conventional inverter. Moreover, an extra diode provides a path for the energy in the leakage inductance to flow to the load in a non-oscillatory manner and reduces the voltage spikes across the switches. The improved TZSI compared to the conventional Γ-Z-source inverter can use a higher modulation index and consequently a lower shoot-through duty for the same input voltage, output voltage and transformer turn ratio, thus, having lower stress across the inverter bridge. It has an improved power factor and better output waveform quality. To validate the advantages of the proposed inverter, analytical, simulated and experimental results are presented.