Single-phase operation of a three-phase induction generator with the Smith connection (SMIG) is analyzed using the method of symmetrical components. It is shown that, despite the asymmetrical nature of the winding connection, balanced currents can be made to flow in the three-phase stator winding. The conditions for achieving perfect phase balance are carefully deduced. With the aid of a phasor diagram, expressions for the line power factor and line current under perfect phase balance are also obtained. The effect of the phase-balancing capacitances on the generator performance is investigated. A simple dual-mode control scheme is also proposed with a view of minimizing the phase imbalance over the practical operating speed range. Experiments conducted on a 2.2-kW induction machine confirm the validity of the theoretical analysis and feasibility of the control method.