In the recent decades multi-level inverters have become most popular for medium and high power applications. The main objective of this technique is used to reduce the total harmonic distortions of inverter output voltage. This paper presents the comparison of conventional and new diode clamped multi-level inverters with pulse width modulation technique. The conventional diode clamped multi-level inverter suffers some problems such as dc link voltage unbalancing, series association of clamping devices, indirect clamping of inner devices. The proposed technique termed as the new diode clamped multi-level inverter gives the solution by using pulse width modulation technique. The simulations of conventional and new diode clamped multi-level inverters are validated on MATLAB/SIMULINK software.