In this paper, a five-level neutral-point-clamped (NPC) inverter with short-circuit fault-tolerant capability is presented. Based on the proposed approach, in order to ensure service continuity subsequent to a short-circuit fault event in a switch, two steps are carried out. First of all, destructive consequences arising from short-circuit fault in a power switch is prevented. Afterwards, according to the defected component, remedial actions are taken. The proposed strategy does not require any redundant component. The service continuity is acquired by applying a remedial control and modifying switching commands applied to the power switches. Using the proposed approach helps to restore the rated voltage and rated current at the terminal, and there is no limit for modulation index during fault-tolerant operation under remedial control. Furthermore, compared to healthy operation, harmonic content of the terminal voltage and current is not deteriorated during fault-tolerant operation. Moreover, additional components, such as bidirectional switches and contactors, are not employed in this strategy. Only some fast fuses are placed in the converter circuit for protection purposes which do not impose a noticeable cost compared to the bidirectional switches and contactors.