Reliability is an important issue in cascaded H-bridge converters (CHB converters) because they use a high number of power semiconductors. A faulty power cell in a CHB converter can potentially lead to expensive downtime and great losses on the consumer side. With a fault-tolerant control strategy, operation can continue with the undamaged cells; thus increasing the reliability of the system. In this paper, the operating principles and the control method for a CHB multilevel rectifier are introduced. The influence of various faults on the CHB converter is investigated. The method of fault diagnosis and the bypassing of failed cells are explained. A fault-tolerant protection strategy is proposed to achieve redundancy in the CHB rectifier. The redundant H-bridge concept helps to deal with device failures and to increase system reliability. Simulation results verify the performance of the proposed strategy.