This paper proposes a new hybrid nine-level inverter topology for IM drive. The nine-level structure is realized by using two three-phase two-level inverters fed by isolated DC voltage sources and six H-bridges fed by capacitors. The number of switches required in this topology is only 36 where as the conventional nine-level topologies require 48 switches. The voltages across the capacitors, feeding the H-bridges that operate at asymmetric voltages, are effectively balanced by making use of the switching state redundancies. In this topology, the requirement of DC link voltage is only half of the maximum magnitude of the voltage space vector. As the two-level inverters are powered by isolated voltage sources, the circulation of triplen harmonic current in the motor winding is prevented. The proposed drive system is capable of functioning in three-level mode in case of any switch failure in H-bridges. The performance of the proposed topology in the entire modulation range is verified by simulation study and experiment. © 2011 IEEE.