Recently, multilevel inverters (MLIs) have gained lots of interest in industry and academia, as they are changing into a viable technology for numerous applications, such as renewable power conversion system and drives. For these high power and high/medium voltage applications, MLIs are widely used as one of the advanced power converter topologies. To produce high-quality output without the need for a large number of switches, development of reduced switch MLI (RS MLI) topologies has been a major focus of current research. Therefore, this review paper focuses on a number of recently developed MLIs used in various applications. To assist with advanced current research in this field and in the selection of suitable inverter for various applications, significant understanding on these topologies is clearly summarized based on the three categories, i.e., symmetrical, asymmetrical, and modified topologies. This review paper also includes a comparison based on important performance parameters, detailed technical challenges, current focus, and future development trends. By a suitable combination of switches, the MLI produces a staircase output with low harmonic distortion. For a better understanding of the working principle, a single-phase RS MLI topology is experimentally illustrated for different level generation using both fundamental and high switching frequency techniques which will help the readers to gain the utmost knowledge for advance research.