This paper proposes a SSSC based on 3-level half-bridge inverters. The dynamic characteristic of the proposed SSSC was analyzed by EMTP simulation and a scaled hardware model, assuming that the SSSC is inserted in the transmission line of the one-machine-infinite-but power system. The proposed SSC has six 3-level half-bridge inverters per phase, which operates in PWM mode. The proposed SSSC generates a quasi-sinusoidal output voltage by 90 degree phase shift to the line current. The proposed SSSC does not require the coupling transformer for voltage injection, and has a flexibility in operation voltage by increasing the number of series connection.