Direct bypass to DC-DC boost converter in traction inverter increases converter’s capability and efficiency significantly by providing a lower loss path for power flow between the battery and DC-link terminal. A bypass using diode is an excellent solution to achieve this capability at low cost and system complexity. The bypass diode operates in the linear operating region (DC Q-point) when the battery discharges through the bypass diode to drive the electric motors. Therefore, thermal stress on the DC-link capacitor is shared between the input and DC-link capacitors through the bypass diode. Inverters introduce voltage oscillation in the DC-link terminal during battery charging through regenerative operation and results in unwanted power oscillation through the bypass diode. Both of these phenomena have been investigated in details. It is possible to eliminate this power oscillation during regenerative mode using minimum voltage boosting at a reduced frequency or using a bi-directional switch (i.e., IGBT/diode or MOSFET/diode pair). The control strategy to achieve minimum voltage boosting has been described in details. Moreover, it is possible to further reduce power loss of the boost converter by completely bypassing the inductor using a bi-directional switch during high voltage battery charging. This work also explains the switching strategy of bi-directional switch to accomplish these advantages.