This paper presents a space vector modulation strategy for a three-phase indirect matrix converter to reduce the common-mode voltage and maintain the output performance. To reduce the peak value of the common-mode voltage to 57.7% of the input phase voltage, three active voltage vectors are used to generate the desired output voltage with arbitrary amplitude and frequency, instead of using both active and zero voltage vectors as in the traditional space vector modulation strategy. Although the common-mode voltage is reduced, the output waveform quality of the three-phase indirect matrix converter deteriorates due to the absence of the zero voltage vectors. To overcome this problem, the proposed space vector modulation strategy is redesigned to control the rectifier stage of the indirect matrix converter by utilizing three active current vectors instead of two as usual. Consequently, the constant average dc-link voltage is achieved, which can improve the output performance in terms of the output voltage and current harmonic distortion. The simulation is implemented by PSIM software and experimental results are provided to verify the effectiveness of the proposed space vector modulation strategy.