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This paper deals with the optimum dead angle operation of a three level 18-pulse voltage source converter (VSC) for power quality improvement in High Voltage DC (HVDC) transmission system. The harmonics level of VSC is optimized by selecting proper dead angle (Ã) of a three level 18-pulse voltage source converter operated at fundamental frequency switching. The effect of varying dead angle (Ã) is also studied in detail and it is compared with two-level voltage source converter. The performance of the proposed converter is studied on various issues such as reactive power compensation, power factor correction and harmonics distortion. Simulation results are presented for this three level multipulse voltage source converter to demonstrate its steady state, dynamic and harmonics performance.