This article proposes a power selective control with fault tolerance of multifunctional inverter for active power injection and power quality compensation. The multifunctional inverter is widely researched, because the inverter capacity can be fully used to realize multiple functions. However, the inverter legs may have open-circuit fault during operation, affecting the realization of inverter functions and even causing the secondary fault. Following the early stage of fault detections, fault tolerance can be applied to inverters, in some cases, to prevent unexpected shutdowns. The fault tolerance control enables the inverter to be reconstructed to another steady state and operates normally under open-circuit fault. By reconstructing of the inverter, the nonfaulty legs can prioritize and selectively inject active, reactive, and harmonic power, so as to realize the multifunction during the leg open-circuit fault. Finally, the simulation and experimental results are given to demonstrate the effectiveness of proposed power selective control with fault tolerance of multifunctional inverter for active power injection and power quality management.