Many different topologies based on the multilevel converter approach have been presented in the last decades. In order to obtain improved output waveforms, several modulation techniques have been developed for such converters. Some of those modulation schemes can be directly applied to almost any multilevel converter, while others require significant adaptation in order to be implemented in certain specific converters. This paper presents the implementation of a phase-disposition level-shifted pulsewidth modulation to the recently introduced hybrid multicell converter (HMC). The HMC uses a flying capacitor module on each cell to generate a positive variable dc-link voltage. The variable dc link is inverted at fundamental switching frequency by an H-bridge to generate the cell output voltage. It is desirable to use PD-PWM for its well-known high-performance waveforms. In this paper, a state-machine decoder is developed to balance the floating capacitor voltages and to equalize the supplied power for the series-connected cells of the HMC when using a PD-PWM pattern. Experimental results obtained from a 10-kW prototype are presented, confirming the good-quality waveforms of the HMC modulated with PD-PWM and the adequate balance of all floating capacitors.