The modular multilevel converter (MMC) is now the most attractive topology for medium and high voltage power conversion applications with several advantages over the traditional voltage source converter (VSC). However, due to a large number of sub-modules (SMs) in the MMC, system reliability is a big challenge in its practical application, where each SM may be considered as a potential point of failure. In this paper, a reliability evaluation based on the Markov model is proposed for the MMC. The failure rates of the power electronic devices and SMs are firstly analyzed. Then, the Markov model and the state transition equation of the system are built in detail. A general reliability evaluation function is established, in which the mean time to failure and reliability evaluation of the MMC with redundant SMs are also discussed. Finally, a practical direct current (DC) distribution example for reliability evaluation is analyzed, and the results verify that the reliability evaluation based on the Markov model could provide a useful reference for project design.