This paper presents a diagnostic method for a sparse matrix converter that detects faults in any single switch or a pair of switches. The sparse matrix converter is functionally equivalent to the standard matrix converter but has a reduced number of switches. The proposed diagnostic method is based in the measurement of input and output currents. The currents have respective characteristic according to the location of faulty switches. This method not only detects the switches of open-circuit fault but identifies the location of the faulty switching devices without complicated calculations. The simulation and experimental results verify that, based on the proposed method, the fault of sparse matrix converter can be easily and fast detected.