This paper suggests the application of an embedded real-time simulator (eRTS) in the context of voltage–sensorless control of a modular multilevel power converter (MMC). This eRTS acts as an observer and ensures digital redundancy in the case of any fault occurring among the capacitor voltage sensors of the MMC submodules. Hence, in such a faulty situation, the MMC controller switches from the measured voltages to their estimated counterparts. As for the digital implementation, to ensure a high level of integration of the overall control system, the Xilinx Zynq-7020 system-on-chip field programmable gate array (SoC-FPGA) device was used. The controller was implemented in the hardwired ARM Cortex-A9 processor, with a 100 µs time step. Regarding the time-sensitive blocks (PWM, eRTS and measurements filtering), a full hardware implementation was privileged, using the FPGA fabric. The execution time of these blocks was 710 ns with a 100 MHz system clock, and the synchronization with the analog to digital acquisition chain was made with a 5 µs time resolution. The whole proof-of-concept system was experimentally tested, including the time/area evaluation of the implemented designs and the experimental validation of the eRTS estimations in both healthy and faulty scenarios.