In this paper, a novel energy recovery circuit for AC PDPs(Plasma Display Panels) with reduced sustain voltage is proposed to improve the performance of conventional circuits such as TERES(TEchnology of REciprocal Sustainer). In the TERES circuit, the sustain voltage is the half of general sustaining driver for AC PDPs, however, there is no energy recovery circuit. In the proposed circuit, the efficiency is heightened by installing in energy recovery circuit and the loss of switching device is reduced by performing the zero voltage switching or zero current switching. Although the energy recovery circuit is added, the number of active switching elements of the proposed circuit is the same as that of the TERES circuit. The operations of the proposed circuit are analyzed for each mode and its validity is verified by the simulations and experimentation.