In this paper, a protection scheme for the microgrid system on low voltage side is proposed as a dc system’s protection techniques are relatively unexplored as compared to the ac systems, whereas the ac systems face numerous problems like frequency matching, reactive power violation and instability. The core objective of the project is to eliminate the faulty section (in the event of occurrence of a fault) promptly while keeping the healthy sections functioning unaltered. In this work, a segment controller exists in the loop type. This has master and slave controllers continually monitoring the segments of grid comprising of semiconductor bidirectional switches and snubber circuits. A master controller is used for all the three segments that monitors the difference between the input and output currents and in the event of the difference being greater than the acceptable limit, instructs the slave controllers to take the required action and eliminate the section under fault. Both line as well as ground faults have been tested on all the sections separately as well as together and perspicuous analysis has been done. It is inferred that the protection scheme is able to isolate the faulty section in a short time and after the faulty section has been eliminated other sections regain their stable voltage and current limits. The protection scheme can identify faults of the grid irrespective of the fault current’s amplitude or the power supply’s feeding capacity. The simulations are designed and verified using MATLAB Simulink 2015a software. © BEIESP.