A new bidirectional multilevel converter topology called the sparse modular multilevel converter suitable for high power ac/ac applications is presented. The proposed topology has fewer insulated-gate bipolar transistor switches and capacitors compared with conventional approaches. Moreover, a salient feature of the proposed topology is that more than half of the switches are operating in soft switching conditions, which considerably decreases the switching losses of the converter. The theoretical calculations and simulation results are provided to verify the feasibility of the proposed topology.