In this paper, focused on direct torque control (DTC) for permanent magnet synchronous generator direct driven standalone variable speed wind turbine. The machine side converter (MSC) employed three-level DTC with dither signal strategy proposed for minimizes the torque & flux ripple. The triangular signal used as a dither signal & injected in a hysteresis band controller of torque & flux comparator. The optimum magnitude of the triangular wave is 3% of its rated torque & flux used in order to reduce acoustic noise. The proposed strategy minimizes torque & flux ripple as compared to conventional two-level DTC technique. Three-level SVPWM strategy employed for a load-side converter (LSC) in order to reduce harmonic distortion.