Abstract-To design a new type of Multi Level Converter known as Modular Multilevel Converter (MMC)integrated with three winding transformer, then it is used for Power Quality Improvement and Voltage Balancing. This project proposes a new type of Modular Multilevel Converter (MMC) applying a three-winding transformer. In general, MMC requires a buffer reactor in each arm, which increases number of components and converter footprint. The proposed MMC with three winding transformer does not require the buffer reactors. We describe mathematical properties of the proposed MMC. We also confirmed it operated as same as typical MMC (with reactor topology) In MATLAB / SIMULINK SOFTWARE.