This paper presents a three level T-type buck-boost voltage source inverter (3LT2-BBVSI) to be used with distributed generation systems. The 3LT2-BBVSI topology combines a three level T-type inverter with DC-DC boost converter in one power stage; thus, high boosting gain along with multi-level shaping of the output voltage are acquired. Compared to other single-stage boost inverters, the proposed one achieves significant reduction in the passive components count; thus, reduced size along with higher efficiency can be realized. In this paper, the topology description along with the steady state analysis are presented. The operation of LT2-BBVSI is verified using OPAL-RT LAB tools. In addition, experimental results using 3LT2-BBVSI prototype are introduced.