Low frequency operation in the modular multilevel converters (MMCs) is enabled by applying a reference common mode voltage and circulating currents at a frequency much higher than the desired output frequency. The frequency of injected common-mode signals is limited for maintaining a good performance in the circulating current control. Firstly, this paper theoretically analyzes the effect of increasing the frequency of injected common-mode signals by evaluating the error between reference and actual circulating currents. Secondly, we introduce an additional parameter in the reference circulating current to enhance the suppression of MMC's capacitor voltage fluctuations. Intensive computer simulations are developed for a seven-level MMC driving a medium-voltage induction motor drive system to verify the circulating current error analysis and assess the capacitor voltage fluctuations. Finally, the proposed technique for suppressing the capacitor voltage fluctuations is experimentally validated on a 600-V three-level MMC feeding an inductive load. The voltage fluctuations are reduced by more than 50% (63.6%) when the proposed technique is applied with a high common-mode frequency. INDEX TERMS Modular multilevel converter, variable speed drive, low frequency operation, circulating current control.