Compared with the conventional AC-DC-AC power converter, the matrix converter can easily realize the transformation of N phases to M phases as a general power conversion device. The matrix converter can produce ideal input and output waveforms, no intermediate energy storage links, two-way energy flow, and fast dynamic response, etc. The three-level matrix converter can improve voltage transmission efficiency, realize multi-level voltage waveform output, and break through the voltage transmission ratio of 0.866 for the common mode voltage problem in the modulation process of a three-level matrix converter. In this paper, an improved space vector modulation algorithm based on a capacitive clamped three-level matrix converter is proposed, and different modulation strategies are selected according to different modulation indices. The common mode voltage of the three-level matrix converter can be minimized. The feasibility and correctness of the simplified strategy are verified by experiments and simulation platforms. This work is supported by Natural Science Foundation of Henan Province (No. 182300410280) and National Key Research and Development Program of China (No. 2016YFC0600906).