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Multilevel converters have become increasingly popular due to high power quality, high-voltage capability, low switching losses, and low electromagnetic compatibility concerns. Considering these advantages, the multilevel converter is a suitable candidate for implementation of future naval ship propulsion systems. This paper focuses on modulation techniques for the multilevel converter. In particular, a novel voltage-source method of multilevel modulation is introduced and compared to existing methods. The proposed method is discrete in nature and can therefore be readily implemented on a digital signal processor. The method is also readily extendable to any number of voltage levels. Results of experimental implementation are demonstrated using a four-level rectifier/inverter system, which incorporates diode-clamped multilevel converters and an 11-level cascaded multilevel H-bridge inverter.