The invention discloses a circuit with an active power decoupling single-phase no-voltage switch inverter and a modulation method thereof. The circuit comprises a direct-current power supply, three groups of bridge arms, a filter inductor of the inverter and a power grid, a filter inductor and an energy-storage capacitor decoupled by active power, an auxiliary switch comprising an anti-parallel diode connected between the direct-current power supply and a bus of the three groups of bridge arms, a resonance branch circuit consisting of a clamping resistor and a resonance inductor, and a capacitor, wherein the three groups of bridge arms comprise two groups of full-bridge single-phase inverters and an active power decoupling group, and each group of bridge arms is composed of two full control type switches with anti-parallel diodes; and the main switch is connected with two ends of the auxiliary switch in parallel. According to the modulation method, pulse signals of the auxiliary switchand the main switch are synchronized, no-voltage switching-on of all switches can be realized in each switching period, the reverse recovery current of the anti-parallel diode of the main switch is effectively inhibited, the switching loss is little, the circuit efficiency is high, the switching efficiency is improved, and the system power density is improved.