When a modular multilevel converter (MMC) adopts the traditional carrier phase-shifted pulse width modulation strategy, the additional capacitor voltage balance strategy for submodules will cause the number of submodules in each phase circuit of the MMC to jump at a high frequency. Therefore, a large induced pulse voltage will appear on the inductance of the bridge arm, which will generate a high-frequency harmonic circulating current, thereby increasing the voltage and current stress of components. Based on the study of the traditional carrier phase-shifted modulation strategy and its application to the MMC, the implementation process is improved to ensure that the number of submodules in each phase circuit of the MMC is constant at any time, so as to avoid the above problems. The improved carrier phase-shifted modulation strategy is analyzed in detail, and the corresponding capacitor voltage balance control strategy is given. Simulation and experimental results show that the circulating current amplitude of the bridge arm is reduced after adopting the improved carrier phase-shifted modulation strategy.