In this paper, a new type fault current limiter (FCL) topology is put forward for Micro-Grid (MG) system fault, which mainly consists of limiting inductance, bypass inductance and series compensation capacitors. The switching circuit is used to change circuit structure through the power diode bridge and FGCT, in the event of a fault the current limiting inductance is switched to limit short-circuit current. The topology has the advantages of switch quickly, simple control, and series compensation effect. Establishes a equivalent model of MG system with FCL, discusses the impact of FCL installation location to system short-circuit protection, and proposes the installation location program. Matlab is used for system modeling and simulation results show that the effect of the current limiter, which is installed on the outlet of the MG system power for three-phase short-circuit protection, is obvious, and has the function of inhibiting voltage sag.