AbstractThe lack of an MMC reliability evaluation approach that incorporates data on essential components' health monitoring in the already related research prevents reliability from being further improved. Therefore, this article proposes a real‐time reliability evaluation method of the multi‐state IGBT module in MMC through iterative calculation of the Markov chain model. The degradation process of the IGBT module is divided into multiple states based on the monitored bond wire failure, and the failure rate of the IGBT module is updated in real time using the accumulated monitoring data of junction temperature. The proposed method can more accurately reflect the real state of MMC compared with the binary state evaluation method. Besides, a multi‐channel high‐speed data acquisition board is designed to measuring the gate voltage and collector voltage of the IGBT for the health evaluation of IGBT modules in MMC; the typically measured results validate the effectiveness of the data acquisition board.