This study proposes a control design for the grid output current and for reducing the neutral-point voltage oscillation through the small-signal modeling of the three-phase grid connected with a three-level neutral-point-clamped (NPC) inverter with LCL filter. The three-level NPC inverter presents an inherent problem: the neutral-point voltage fluctuation caused by the neutral-point current flowing in or out from the neutral point. The small signal modeling consists of averaging, dq0 transformation, perturbing, and linearizing steps performed on a three-phase grid connected to a three-level NPC inverter with LCL filter. The proposed method controls both the grid output and neutral-point currents at every switching period and reduces the neutral-point voltage oscillation. The validity of the proposed method is verified through simulation and experiment.