This paper proposes a current ripple reduction method to improve the control performance of B4 type inverter that is studied for cost-effective drive systems. B4 inverters employ only four switches and they have a center-tapped connection between the split dc-link capacitors and one phase of a three-phase motor or load. In the B4 topology, unbalanced three-phase voltages will be generated due to the dc-link voltage ripple. To solve this problem, this paper presents a voltage distortion compensation method that adjusts the voltage reference with the consideration of dc-link voltage ripple. The validity of the proposed method is verified by simulation and excremental results with an induction machine.