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In this paper, it is described how the circulating current flows between inverters that have isolated dc link such as cascaded H-bridge (CHB) topology when they are operating in parallel. In this case, zero sequence circulating current, which normally flows through shared dc link, cannot flow between inverters in parallel. However, circulating current is provoked by asynchronous switching instant of devices, difference of dc-link voltages of parallel inverters, and unbalanced impedance. The circulating current should be suppressed by a sharing inductor that is inserted between inverters. Generally, all of the inverters should synthesize the same output voltage reference for load current control to minimize the size of this sharing reactor. However, this conventional method cannot guarantee diminishing circulating current in the transient state and even in the steady state. In this paper, in order to reduce sharing reactance, after deriving circulating current model from general case of n-parallel operation, circulating current control method is devised based on the model. This proposed algorithm is applied to active front end five-level-CHB inverter system for medium voltage drive. Simulation and experimental results are provided to verify the effectiveness of the proposed control scheme. [ABSTRACT FROM AUTHOR]