In this paper, an interleaved AC-DC converter with common-mode (CM) and differential-mode (DM) coupled inductors is proposed. The proposed topology can fulfil the general requirements of interleaved AC-DC rectifier, such as filtering grid side ac current and suppressing circulating current. Moreover, it can deliver a better EMI performance due to the reduction in leg current spikes. The operation principle of the converter is analyzed. The high frequency equivalent circuit of the passive component combination, the CM and DM coupled inductors, is presented. The mechanism of reducing the current spikes is analyzed. The proposed converter and according analysis are verified by simulation and experiment.