In recent years, multilevel inverters (MLIs) have emerged to be the most empowered power transformation technology for numerous operations such as renewable energy resources (RERs), flexible AC transmission systems (FACTS), electric motor drives, etc. MLI has gained popularity in medium- to high-power operations because of numerous merits such as minimum harmonic contents, less dissipation of power from power electronic switches, and less electromagnetic interference (EMI) at the receiving end. The MLI possesses many essential advantages in comparison to a conventional two-level inverter, such as voltage profile enhancement, increased efficiency of the overall system, the capability of high-quality output generation with the reduced switching frequency, decreased total harmonic distortions (THD) without reducing the power of the inverter and use of very low ratings of the device. Although classical MLIs find their use in various vital key areas, newer MLI configurations have an expanding concern to the limited count of power electronic devices, gate drivers, and isolated DC sources. In this review article, an attempt has been made to focus on various aspects of MLIs such as different configurations, modulation techniques, the concept of new reduced switch count MLI topologies, applications regarding interface with renewable energy, motor drives, and FACTS controller. Further, deep insights for future prospective towards hassle-free addition of MLI technology towards more enhanced application for various fields of the power system have also been discussed. This article is believed to be extremely helpful for academics, researchers, and industrialists working in the direction of MLI technology.