Diode clamped multi-level inverter (DCMLI) has wide application prospect in high-performance medium or high voltage adjustable speed drive systems. In this paper, a novel SVPWM (Space Vector Pulse Width Modulation) algorithm for DCMLI fed induction machine drive is proposed. This algorithm transforms the reference space vector into the non-orthogonal coordinate system. It overcomes the shortcoming of traditional algorithm involving the difficult calculation of trigonometric functions, which can easily get the desired vectors and calculate their dwelling time. The simulation and experimental results verify the validity of this algorithm.