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This paper presents a new control strategy for real and reactive power control of three-level multipulse voltage source converter based High Voltage DC (HVDC) transmission system operating at Fundamental Frequency Switching (FFS). A three-level voltage source converter replaces the conventional two-level VSC and it is designed for the real and reactive power control is all four quadrants operation. A new control method is developed for achieving the reactive power control by varying the pulse width and by keeping the dc link voltage constant. The steady state and dynamic performances of HVDC system interconnecting two different frequencies network are demonstrated for active and reactive powers control. Total numbers of transformers used in the system are reduced in comparison to two level VSCs. The performance of the HVDC system is also improved in terms of reduced harmonics level even at fundamental frequency switching.