This paper proposes a Downstream Fault Current Limiter (DFCL) for DVR during downstream faults. It Is based on the concept of Virtual Impedance (VI) which introduces the impedance in series to the system to suppress the large fault currents in the line. In the present work no additional equipment is involved for limiting the fault current and DVR itself is controlled such that FCL operation is ensured. The proposed VI based FCL features flexible implementation and can effectively suppress the fault current during the downstream faults and thereby the DVR is protected along with restoration of PCC voltages. Simulation studies are performed for 10 kV system using PSCAD/EMTDC platform and respective results are presented which proves the feasibility and efficacy of the proposed FCL. © 2018 IEEE.