This paper proposes a new cascaded three-phase multilevel inverter based on a cascaded submultilevel and single-phase H-bridge structure. The voltage source of the traditional single-phase H-bridge is replaced with the proposed cascaded submultilevel. Cascading two basic units forms the submultilevel unit. The basic and submultilevel units generate positive voltage only hence the need for an H-bridge to generate both polarities of load voltage. Five algorithms of source voltage are proposed and the optimal algorithm selected to generate the peak load voltage and output levels. The proposed three-phase cascaded multilevel inverter generates 31-level of load voltage. The per-phase component distribution of the proffered inverter are twelve power switches, four dc sources and twelve driver circuits accordingly. Principal merits of the proposed 31-level inverter are high quality load waveforms, production of high levels of load voltage utilizing reduced component quantity, simple cascaded layout, decreased inverter area, minimal inverter cost, minimum inverter losses and utilizing lower rated switches. Also, the proposed topology is highly suited for employment in PV-DVR and other power systems. To validate these advantages of the proposed multilevel inverter, contrastive analysis of the proposed inverter and existing topologies are studied. Finally, the functionality of the proposed inverter is substantiated by simulation in PSCAD/ EMTDC software.