This paper discusses the design and implementation of a three-phase three-level diode-clamped multilevel inverter using sine pulse width modulation (SPWM) to reduce harmonic distortion compared to traditional inverters. The operational principles, simulations via MATLAB/Simulink, and hardware implementation are presented, demonstrating improved dynamic performance and lower total harmonic distortion (THD). Results indicate that the proposed inverter effectively enhances output voltage quality and reduces electromagnetic interference.