This paper describes a new optimized switching states-based model predictive control (OSSB-MPC) strategy to control the grid current and balance the two dc-bus capacitor voltages simultaneously in a three-level active neutral-point clamped (3L-ANPC) inverter. The proposed control algorithm optimizes the switching states of 3L-ANPC based on the constraints of switching state transition, neutral point current path, and switch commutation. Therefore, the optimized switching states can reduce the control execution time required to calculate the minimum cost function of the MPC algorithm by 70 %. The performance of the proposed OSSB-MPC algorithm is experimentally tested with controller hardware in the loop-based system.