Abstract: To address issues related to rapid increases in fault currents, high peak values, and the challenge of ensuring reliable power supply in non-fault areas within DC distribution networks, a novel fault current limiter for DC grids is proposed. The limiter design incorporates a bridge circuit to diminish peak fault currents, a coupling reactance for expediting fault transfer, and a primary current-limiting branch that employs pulse-width modulation to suppress fault currents. A coordinated strategy is introduced between the proposed limiter and DC circuit breakers, utilizing voltage differential criteria and directional overcurrent protection. The effectiveness and accuracy of the proposed solution are validated through simulation systems, and preliminary experiments are conducted. Results demonstrate that the proposed limiter effectively curtails fault currents, reducing fault current interruption by at least 90% compared to existing fault isolation methods. This successful implementation of the coordinated strategy ensures the avoidance of converter station lockouts and guarantees the system's power supply reliability.