: This paper proposes an output voltage error compensation method for cascaded H-bridge (CHB) inverters that employ phase-shifted pulse width modulation (PS-PWM). In the PS-PWM scheme, the individual CHB cells have different reference update timings, resulting in a deviation of the average output voltage from the intended voltage reference. This voltage error causes an initial transient current at the start of control. Therefore, by considering the update timing of the voltage reference in each cell, this paper derives compensation values to mitigate the voltage error. The proposed method improves dynamic performance, effectively suppressing the transient current. The effectiveness of the proposed method is verified by DSIM simulation results of a single-phase seven-level CHB inverter.