This paper proposes a novel cost‐effective feature as a three‐phase four‐switch inverter utilizing a modified quasi Z‐source (MQZs) network. This inverter exploits a pulse‐width modulation (PWM) control strategy based on developed space vectors to provide balanced three‐phase output voltages and currents. It also has many applications such as the three‐phase induction motor (IM) with adjustable speed drive (ASD) fed by a DC and/or rectified AC supply. Unlike some other similar four‐switch inverters or converters, which can only work in step down (buck) mode or step up (boost) mode, this inverter can operate in both modes that depend on switching signals and due to adjusting the zero shoot‐through (Zsh‐th) duty cycle. It also decreases the total harmonic distortions (THD) of output voltages and currents. The MQZs inverter reduces the switching losses and the cost of topology in comparison with the conventional six‐switch topologies. The utilized control strategy can work well without any extra filtering circuit in DC side to eliminate the effect of the DC‐bus voltage ripples on the inverter output currents and voltages. The experimental results are found closely analogous and confirm the aforementioned features of the proposed topology compared with other traditional topologies, although the inverter output filter is a conventional LC filter.