In this paper, a novel self-balancing sevenlevel inverter with coupled inductor is proposed. The proposed inverter can generate seven-level voltage with only two capacitors, and there are series charged and parallel discharged path to auto balance the capacitors voltages. Compared with the same level traditional inverter topologies, this new topology uses fewer components and achieves voltage balance without any voltagebalancing circuit or complex control method, so smaller size of circuit and higher power density can be realized. The total harmonic distortion of the output voltage is low. The control scheme is implemented by TMS320F28035. Finally, a 2 kW laboratory prototype inverter with input voltage 380 V is proposed to verify the theoretical analysis and the performance.