[Introduction] With the development of new loads, such as distributed power sources and electric vehicles, DC(Direct Current) microgrids have the advantages of fewer commutation links and lower system losses than AC(Alternating Current) microgrids, and have become the current research hotspot. Due to the small coverage of the DC microgrid and access to a large amount of distributed power sources, the fault current rises quickly with a large amplitude when inter-pole short-circuit fault occurs, making it difficult to achieve differential coordination with traditional overcurrent protection used in AC distribution networks and posing a great challenge to fault localization. [Method] Therefore, in response to the characteristics of fault current in DC microgrids, the method for designing overcurrent protection setting value based on the precise control value of fault current through the integration of current limiting and protection was proposed. Combined with the reasonable capacity design of each branch, it can easily achieve differential coordination and accurately locate faults. [Result] A corresponding DC microgrid model is built on the PSCAD/EMTDC simulation platform. The proposed protection scheme is simulated and verified, and the result shows that the scheme can correctly locate the fault point and quickly remove the fault. [Conclusion] The proposed protection scheme can ensure the selectivity of overcurrent, which verifies the rationality of the scheme