An　enhanced　level-increased　nearest　level　modulation　(eNLM)　method　is　proposed　to　improve　the　performance　of　modular　multilevel　converter　(MMC)　with　relatively　small　number　of　submodules.　The　eNLM　method　can　almost　double　the　level　number　of　ac　output　voltage,　compared　with　conventional　NLM.　Consequently,　the　ac　output　voltage　quality　of　the　MMC　using　eNLM　is　significantly　enhanced.　The　proposed　method　inherits　the　advantages　of　the　conventional　NLM　such　as　simple　implication　and　low　switching　loss　and　avoids　the　disadvantages　of　the　existing　improved　NLM　method　such　as　increasing　in　submodule　capacitor　voltage　ripple　amplitude　and　voltage　offset,　arm　inductor　voltage　peak,　complexity　in　topology,　etc.　PSCAD/EMTDC　simulation　results　confirmed　the　effectiveness　of　the　proposed　method.　©　2018　John　Wiley　&　Sons,　Ltd.