<p>Ripples in capacitor voltage is the major drawback of modular multilevel converter. For minimization of this problem, an improved auxiliary circuit has been included in the conventional MMC of this paper. The proposed circuit includes three switches and one capacitor which helps to improve the performance of the converter in terms of module capacitor voltage balancing, reduction of magnitude of circulating current. The proposed circuit consists of three switches and one capacitor, which significantly enhances module capacitor voltage balancing and reduces the magnitude of circulating current. The modified MMC also lowers the voltage and current stress on switching devices, thereby reducing their rating requirements and reduces the stress on switching devices, resulting in better reliability. According to the modified MMC, proposed phase shift modulation has developed through the designed proposed controller. The proposed converter has been developed and implemented with the help of resistive and inductive load using MATLAB/SIMULINK software. The improved performance of the converter can be observed using the simulation results and Experimental test.</p>