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Despite numerous research efforts in matrix converter-based drives, a study of fault-tolerant topology and control strategy for a matrix converter drive has not been presented in the literature. This paper proposes a matrix converter structure and a modulation technique for the remedial operation in case of opened switch faults and single-phase open circuits. The fault compensation is achieved by reconfiguring the matrix converter topology with the help of a connecting device. Based on the redefined converter structure, a fault-tolerant modulation algorithm is developed to reshape output currents of two unfaulty phases for obtaining continuous operation. The proposed method allows improved system reliability and fault-tolerant capability with no backup leg and no parallel redundancy. Simulation and experimental results are shown to demonstrate the feasibility of the proposed fault-tolerant approach to the matrix converter drives.