The thesis presents the 'Design and Simulation of three phase inverter'. In this thesis, the major discussion is divided into two main parts. Firstly, different types of inverter arrangments are examined in PSIM. The most interesting part in the simulation process is the performance comparison between unipolar and bipolar inverter. Power MOSFET is used in this comparison process. A pulse Width Modulation (PWM) gating signal that switched on MOSFET is generated by comparing sinusoidal and triangular wave. By analyzing the performance in PSIM, an optimum design is finalized base on the observation in simulation process. Secondly, the finalized design is implemented in practice as a prototype on breadboard. Curtin Laboratory Interface Controller is used in practice in order to generate a desired PWM signal. The performance in practical stage is then reviewed. The problems faced in throughout the project are then discussed. Some suggestions for future improvement of the three phase inverter are included as well.