This paper presents a topology for a modular power electronic transformer (PET) and a control scheme. The proposed PET consists of a cascaded H-Bridge rectifier on the primary side, a high-frequency DC/DC conversion cell in the center, and a cascaded H-Bridge inverter on the secondary side. It is practical to use PETs in power systems to reduce the cost, weight and size. A detailed analysis of the structure is carried out by using equivalent circuit. An algorithm to control the voltages of each capacitor and to maintain the power flow in the PET is established. The merits are analyzed and verified in theory, including the bi-directional power flow, variable voltage/frequency and high power factor on the primary side. The experimental results validated the propose structure and algorithm.