In this article, a new model-based fault detection and localization scheme is proposed for cascaded H-bridge (CHB) multilevel converter to localize the open-circuit faults without needing any additional sensors. The grid current is estimated from the gird voltage, switching states, and dc bus voltages, and compared with the measured grid current. Any significant deviations in the estimated and actual grid currents of the CHB trigger an open-circuit (OC) fault. Once the fault is detected, modulation scheme is switched from phase-shifted unipolar SPWM to phase-shifted bipolar sine pulse width modulation (SPWM) to localize the OC faults. At selected time instants, the change in measured grid current for a specific period is calculated and compared with the estimated change in grid current from the system model. The abovementioned comparisons are used to localize the OC faults in the CHB. The proposed method is validated on a scale-down CHB prototype developed in the laboratory environment, and experimental results are presented to demonstrate the effectiveness of the proposed method. © 1972-2012 IEEE.