In this paper, a single-phase direct pulse width modulation (PWM) buck-boost AC–AC converter is proposed. The proposed converter utilizes a minimum number of semiconductor switches and passive components that decreases the converter power losses and offers high efficiency. It can be operated with simple PWM control and doesn’t require soft-commutation strategies. It does not suffer from input source shoot-through and commutation problems. Moreover, it supplies both continuous input and output currents. The common sharing ground of the input and output gives the proposed converter the feature that it can be utilized for voltage sag and swell compensation. A comparison of the proposed converter performance with similar existing converters is presented. Also, detailed circuit analysis, component design guidelines, and simulation results using the MATLAB/Simulink environment are demonstrated. A laboratory prototype has been built and tested to validate the converter performance and confirm the results obtained by computer simulation.