In this paper, a control scheme combining grid voltage sensorless control and natural frame control (NFC) has been proposed for single-phase cascaded H-bridge converter (CHB) under distorted grid conditions. Firstly, the virtual flux (VF) signal is estimated by a modified virtual flux estimator (VFE). Then the VF-based NFC is derived, using the estimated sinusoidal VF signal to generate the unit vectors for synchronization, which enables the omitting of the coordinate transformation, current quadrature signal generation, and phase-locked loop (PLL). Aiming at the problem that grid harmonic interference is not well considered in the conventional NFC and conventional voltage sensorless control, a current controller with enhanced harmonic-rejection ability is proposed in this paper. As a result, better steady-state performance and rapid transient response are achieved. The effectiveness of the proposed method has been verified on a prototype of the single-phase 3-cell CHB converter.