On-line condition monitoring is of paramount importance for multilevel converters used in safety-critical applications. A novel on-line diagnostic method for detecting open-circuit switch faults in neutral-point-clamped (NPC) multilevel converters is introduced in this paper. The principle of this method is based on monitoring the abnormal variation of the dc-bus neutral-point current in combination with the existing information on instantaneous switching states and phase currents. Advantages of this method include simpler implementation and faster detection speed compared to other existing diagnostic methods in the literature. In this method, only one additional current sensor is required for measuring the de-bus neutral-point current, therefore the implementation cost is low. Simulation and experimental results based on a lab-scale 50 kVA adjustable speed drive (ASD) with a three-level NPC inverter validate the efficacy of this novel diagnostic method.