The present invention relates to an SVPWAM modulation method based on a three-level direct matrix converter. The method comprises the following steps: (1) determining input phase current space vectors and output phase voltage space vectors desired by a three-level direct matrix converter; (2) performing virtualization of the three-level direct matrix converter to a serial circuit model comprising a virtual rectification stage and a virtual inversion stage; (3) employing SVPWAM modulation for the virtual rectification stage to determine switching signals of each switch tube of the virtual rectification stage; (4) employing the SVPWAM modulation for the virtual inversion stage to determine switching signals of each switch tube of the virtual inversion stage; and (5) converting the switching signals of each switch tube of the virtual rectification stage and the switching signals of each switch tube of the virtual inversion stage to switching signals of each two-way switch of the three-level direct matrix converter. Compared to the prior art, the number of off and on times is maximally reduced, switching loss is reduced, the harmonic wave content of an input current is reduced, and the quality of a power grid is improved.