: This paper proposes a novel level-shifted PWM (LS-PWM) strategy for fault tolerant cascaded multilevel inverter. Most proposed fault-tolerant operation methods in many of studies are based on a phase-shifted PWM (PS-PWM) method. To apply these methods to multilevel inverter systems using LS-PWM, two additional steps will be implemented. During the occurrence of a single-inverter-cell fault, the carrier bands scheme is reconfigured and modulation levels of inverter cells are reassigned in this proposed fault-tolerant operation. The proposed strategy performs balanced three-phase line-to-line voltages and line currents when a switching device fault occurs in a cascaded multilevel inverter using LS-PWM. Simulation and experimental results are included in the paper to verify the proposed method.