This paper presents a short circuit (SC) fault diagnosis (FD) method for switches of a single-phase voltage source inverter (VSI) with fault-tolerant topology. From the diagnostic variables, the diagnostic rules are established through a digital procedure, and, consequently, the diagnostic method is performed with digital logic circuits. The VSI reconfiguration requires the use of a redundant leg, which replaces the faulty leg, and four additional switches for load connection alterations. The diagnostic signals serve a dual function: detecting and locating the SC fault and secondly reconfiguring the inverter topology. The proposed FD method and the procedure for reconfiguring the VSI were verified through laboratory simulation and field experimentation.