A cascaded multilevel converter (CMC) with hybrid energy storage system (HESS) offers a promising solution for high-voltage and high-power hybrid dc-ac systems. However, asymmetric power distribution (APD) across different energy storage systems (ESSs) presents a challenge. This article proposes a dynamic power management strategy for CMC-based HESS, featuring dynamic power sharing to optimize power allocation between batteries and supercapacitors (SCs) based on their distinct response times. In addition, battery state-of-charge (SOC) balancing and SC energy management strategies are introduced to maintain optimal energy distribution and ensure long-term operation. The approach enhances overall system performance by fully leveraging the complementary strengths of batteries and SCs. The effectiveness of this strategy is validated through simulations and experiments, confirming its scalability and adaptability to various CMC-based HESS configurations.