In view of the complex calculation and limited fault tolerance capability of existing neutral point shift control algorithms, this paper studies the fault-tolerant control method for sub-module faults in modular multilevel converters on the basis of neutral point compound shift control strategy. In order to reduce the calculation complexity of shift parameters in the traditional strategy and simplify its implementation, an improved AC side phase voltage vector reconstruction method is proposed, achieving online real-time calculation of the modulation wave adjustment parameters of each phase required for fault-tolerant control. Based on this, a neutral point DC side shift control method is proposed to further improve the fault tolerance capability of the modular multilevel converter (MMC) system by compensating the fault phase voltage with non-fault phase voltage. By means of the compound shift control strategy of the DC side and AC side of the neutral point, an optimal neutral point position is selected to ensure that the MMC system output line voltage is symmetrical and the amplitude is as large as possible after fault-tolerant control. Finally, the effectiveness and feasibility of the proposed control strategy are verified by simulation and low-power MMC experimental system testing.