A fault current limiter (FCL) for limiting a fault current in a power line during a fault condition. The FCL includes a magnetic coupling circuit for monitoring current in the power line through magnetic coupling; a sensing circuit for sensing the current in the power line and providing a signal indicative of the sensed current; a control circuit receiving the signal indicative of the sensed current in the power line and determining whether the sensed current indicates that the fault condition exists; and high and low impedance paths that are connected in parallel. The high impedance path includes a discharging impedance circuit for limiting the fault current. The low impedance path includes a reactor circuit and a switching unit having an ON state for conducting current through the low impedance path and an OFF state for conducting current through the high impedance path.