Multi modular converter (MMC) based DC to AC converters are widely used to interface large rating renewable energy power plants to electric grid. The performance of these converters depends on the pulse width modulation (PWM) algorithm used. This paper proposes an improved space vector PWM (SVPWM) algorithm for MMC which ensures voltage balance across each sub module and also results in low circulating current. The proposed SVPWM algorithm is verified on a 5-level MMC based DC to AC converter. The closed loop control of above converter with grid connected operation is demonstrated. The proposed SVPWM algorithm maintains balanced voltage in all sub modules and also results in low circulating current. This is demonstrated for different operating conditions through simulation. © 2017 IEEE.