In this paper, an ultralow inductance power cell is designed for a three-level active neutral point clamped (3L-ANPC) based on 650-V gallium nitride (GaN) high electron mobility transistor (HEMT) devices. The 3L-ANPC topology with GaN HEMT devices and the selected modulation scheme suitable for wide-bandgap devices are presented. The commutation loops, which mainly contribute to voltage overshoots and increase of switching losses, are discussed. The ultralow inductance power cell design based on a four-layer printed circuit board with the aim to maximize the switching performance of GaN HEMTs is explained. The design of gate drivers for the GaN HEMT devices is presented. Parasitic inductance and resistance of the proposed design are extracted with finite-element analysis and is discussed. Common-mode behaviors based on the simulation program with integrated circuit emphasis (SPICE) model of the converter are analyzed. Experimental results on the designed 3L-ANPC with output power of up to 1 kW are presented, which verifies the performance of the proposed design in terms of ultralow inductance.