Parallel three-level T-type converters (3LT2Cs) have attracted considerable attention due to the advantages of high-power ratings and improved reliability. However, there is the circulating current in the parallel 3LT2Cs system, which can cause current distortion and increase power losses. Unbalanced operating conditions will exacerbate the circulating current problem. To suppress the circulating current, a controlled-impedance-source method is developed. This method suppresses circulating current by increasing the equivalent impedance of the circulating current circuit, which does not require additional hardware. The effectiveness of the proposed method is demonstrated by the experimental results.