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This paper presents a unique design for flying capacitor type multilevel inverters with fault-tolerant features. When a single-switch fault per phase occurs, the new design can still provide the same number of converting levels by shorting the fault power semiconductors and reconfiguring the gate controls. The most attractive point of the proposed design is that it can undertake the single-switch fault per phase without sacrificing power converting quality. Future more, if multiple faults occur in different phases and each phase have only one fault switch, the proposed design can still conditionally provide consistent voltage converting levels. This paper will also discuss the capacitor balancing approach under fault-conditions, which is an essential part of controlling flying capacitor type multilevel inverters. Suggested fault diagnosing methods are also discussed in this paper. Computer simulation and lab results validate the proposed controls.