A cluster of distributed generation (DG) is a Microgrid (MG) and load which acts as a heavy load or source in the context of actual grid. The sudden gust in the microgrid causes rise in fault current which surpasses the shortcircuit limit of network equipment by microgrid connection and also the increase in penetration of DG into the grid, the fault current level is also increased simultaneously. In order to overcome this problem, fault current limiter (FCL) could be arranged between the main network and microgrid. There are different types of FCLs, which have various designs and are made of various superconducting materials. Superconducting Fault Current Limiter (SFCL) is revolutionary protective device which has the ability to lower the fault current level within the fault current first cycle. The application of the SFCL would not only reduce the burden on network devices, but also offers connection for the betterment of the power system reliability. SFCL's are broadly classified into three types: inductive, resistive and hybrid SFCL. In this paper, general characteristics of FCLs, the operating characteristics, current limiting capabilities ofSFCLare introduced into a simplified microgrid model system which is finally allowed that SFCL could reasonably bring about the function of microgrid stability improvement and fault current suppression. © 2018 the Author(s).