In modern applications, such as variable frequency electric drives, aircraft propulsion, electric vehicles, and uninterruptible power supply units, high power-dense, and efficient AC-AC power converters are the key to reducing power losses, thus limiting the overall costs, and improving the system's reliability. Power electronic equipment can be enhanced thanks to the continuous evolution of conversion topologies and advancements in power semiconductor technology. The design and the optimization strategy of the AC-AC 5-Level converter, called Interleaved 3-Phase 5-Level E-Type Back-to-Back Converter (I-3Φ5L BTB E-Type Converter), has been proposed in this paper. The converter is analyzed and experimentally characterized to prove the configuration's high efficiency and high-power density. An introduction to the characteristics of the I-3Φ5L BTB E-Type Converter is described, and afterward, the optimization methodology to design the multilevel converter is presented. The converter prototype is illustrated, which achieves a peak efficiency of 98.2% and a total weight of 6.18 kg using hybrid technology for power semiconductors..