High-voltage dc/dc converters play an important role in HVDC grids. Isolated modular dc/dc converters (IMDCCs) based on modular multilevel converter (MMC) technology provide a good solution to high-voltage applications. In order to reduce the size of the system, the IMDCC is required to be operated with a high ac link frequency, but this will lead to increased switching loss and thus degraded efficiency. This paper proposes a soft-switching operation scheme for such an IMDCC. In this scheme, a quasi-square-wave (QSW) modulation method is employed, where the chain-links generate quasi-square terminal voltages with reduced dv/dt. With such chain-link terminal voltages, the arm currents which provide good condition for the soft-switching operation of the QSW-IMDCC can be obtained. Since soft-switching can be achieved for the power switches, the proposed scheme will suffer less switching loss, thus improving the efficiency of the converter. Moreover, a capacitor voltage balancing control strategy is proposed. This strategy does not need any arm current sensors, thus reducing the cost. The proposed soft-switching operation scheme and capacitor voltage balancing control strategy are verified by the simulation results.