This paper proposes a new breed of high-voltage dc (HVDC) transmission systems based on a hybrid multilevel voltage source converter (VSC) with ac-side cascaded H-bridge cells. The proposed HVDC system offers the operational flexibility of VSC-based systems in terms of active and reactive power control, black-start capability, in addition to improved ac fault ride-through capability and the unique feature of current-limiting capability during dc side faults. Additionally, it offers features such as smaller footprint and a larger active and reactive power capability curve than existing VSC-based HVDC systems, including those using modular multilevel converters. To illustrate the feasibility of the proposed HVDC system, this paper assesses its dynamic performance during steady-state and network alterations, including its response to ac and dc side faults.