This paper proposes a new diagnosis method of an open-switch fault and fault-tolerant control strategy for T-type three-level inverter systems. The location of the faulty switch can be identified by the average of the normalized phase current and the change of the neutral-point voltage. The proposed faulttolerant strategy is explained by dividing into two cases: the faulty condition of half-bridge switches and neutral-point switches. The performance of the T-type inverter system improves considerably by the proposed fault-tolerant algorithm when a switch fails. The proposed method does not require additional components and complex calculations. Simulation and experimental results verify the feasibility of the proposed fault diagnosis and fault-tolerant control strategy.