A method for detecting a short circuit fault in a multi-level inverter circuit is provided. The multi-level inverter circuit includes a plurality of single phase branches each including of switches. The method includes steps outlined below. At least one detecting pulse sequence is transmitted to the switches of each of the single phase branches. Whether a conducting path is formed in any of the single phase branches is determined according to the detecting pulse sequence. When the conducting loop is formed, respective position of one or more malfunctioned switch in the single phase branches is located according to a path of the conducting loop. A short-circuit detection device and a three-phase three-level inverter circuit are also disclosed herein.