This paper proposes a fault diagnosis and tolerant control methods for an open-switch fault caused in a three-phase three-level neutral-point-clamped (NPC) pulse-width modulation (PWM) active rectifier. The open-switch fault in the three-level NPC active rectifier causes a distortion in the input phase current and a ripple in the DC-link capacitor voltage. Therefore, proper fault diagnosis and tolerant control methods are required to prevent additional failures and performance degradation in the rectifier system. This paper conducted a detailed analysis of the effect of the single open-switch fault on the NPC PWM active rectifier and proposed a fault diagnosis method utilizing the DC link voltage and the phase angle of the input grid voltage. Furthermore, this paper proposes a fault-tolerant control method to reduce the effect of the open-switch fault by compensating a distorted reference voltage. The effectiveness of the proposed fault diagnosis and tolerant control methods are verified through experimental results.