This paper presents a generalized power-decoupling control scheme using a multiport isolated bidirectional converter for a multilevel inverter, which has multiple dc links inside. In the proposed method, a single power-decoupling capacitor is needed for all the dc links in the multilevel inverter cell. First, a prototype of the power-decoupling concept of individual H-bridge cells in the multilevel inverter is proposed, using a separate power-decoupling circuit. Then, a more advanced one-step power-decoupling method is proposed. The lifetime and reliability of the multilevel inverter is improved as film capacitors replace the large capacitance electrolyte capacitors. A multi-input ports/single output voltage-fed dual half-bridge converter (MDHB) is used for the power-decoupling circuit. A steady-state analysis for the peak and root mean square of the MDHB current is carried out for the loss breakdown. The currents are functions of the switching frequency, phase shift, leakage inductance, turn ratio, and output voltage, which make the multiport transformer design complex. A design methodology is proposed, which takes into account the design of the copper and core losses as functions of the switching frequency and number of turns. Furthermore, a special winding method for the input port is illustrated to obtain identical leakage inductances for the uniform current distribution in the multiport transformer. The proposed MDHB employs a current-sensorless power-decoupling control that contributes to the spontaneous ripple rejection of all the dc links without individual link current information, as well as to the cost and size reduction. Hence, the ripple-rejection controller is independent of the control configuration of the multilevel inverter, and also available for universal applications of various inverter topologies. Since the primary-input ports of MDHB share a single magnetic core for interfacing the ripple power to the unified secondary ripple capacitor, the controller design becomes difficult in considering the dynamic interaction among the ports, along with the average-voltage control loop design. In this paper, the dynamic analysis and controller design procedure of the circuit is also presented. The power decoupling is achieved even when the ripple frequency is other than the double frequency of the inverter output, since the single-pole transfer function of the small-signal model of the MDHB allows sufficient phase margin, along with high bandwidth. The proposed power-decoupling method for the multilevel inverter is validated with the help of simulation and 1.2-kW hardware prototype experimental results.