This paper introduces a new full-bridge hybrid multilevel converter topology that is realized through combining the two-level leg and the multilevel leg based on the stacked multicell (SM) converters. The 50% reduction in the number of switching power cells, semiconductor devices, and the flying capacitors (FCs) are the profound advantages of the proposed topology in comparison with the standard SM converter. These features decrease the voltage rating of the capacitors as well as their stored energy, and the size and cost of the converter. This improvement is achieved by adding two line-frequency switches to the conventional topology. A modified phase-shifted-carrier pulse-width-modulation (PSC-PWM) strategy has been adopted to control the proposed topology, and consequently it demonstrates the outstanding feature of the natural-balance for FC voltages. Simulation results are provided to validate the proposed topology and its control technique.