In this paper, the dynamic overmodulation characteristics of current-regulated carrier-based high-performance pulsewidth modulation (PWM) voltage-source inverter drives are investigated. Dynamic and steady-state overmodulation operating modes are clearly distinguished, and the requirements for obtaining high performance in each mode are shown to be significantly different. Dynamic overmodulation characteristics of the modern triangle intersection PWM methods are modeled and shown to be unique for each method. The study reveals space-vector PWM (SVPWM) exhibits a minimum voltage magnitude error characteristic. It also indicates all the advanced triangle intersection PWM methods, including SVPWM, have limited dynamic overmodulation performance. To enhance the performance, an algorithm with superior performance is adapted from the direct digital PWM approach. Detailed induction motor drive simulations and experimental results illustrate the characteristics of modern triangle intersection PWM methods and the performance gained with the new dynamic overmodulation algorithm.