Currently, inverters employing uncontrolled rectifiers combined with two-level inverter circuits are widely used in industrial applications. However, uncontrolled rectifiers using diodes generate significant harmonic distortion, which degrades power quality and limits power flow to a unidirectional transfer from the source to the load via the inverter. During regenerative braking, the motor operates as a generator, sending energy back to the DC-link, which is then dissipated through braking resistors. Additionally, the two-level inverter topology contributes to high output harmonics, necessitating large output filters and reducing overall system efficiency. In contrast, inverters with active rectifiers enable bidirectional power flow control, reduce input current harmonics, and regulate DC-link voltage effectively. When combined with multilevel inverter topologies, such as the three-level inverter, the output harmonic content is significantly reduced, resulting in smaller filter requirements and improved load lifetime. This paper presents a performance comparison of inverters using active rectifiers with both two-level and three-level inverter configurations. The simulation results are validated using Matlab & Simulink.