This paperpresents the operation principleof voltage compensation type active superconducting fault current limiter (SFCL) for the three phase power transmission system. A voltage compensation typeactive super-conducting fault current limiter is composed forthree phase air core super-conducting transformer & PWM converter. The primary winding of three phase air-core super-conducting transformer is connected series with the AC main circuit & secondary winding connectedin starwith the super-conducting coil through a PWM converter. In normal condition, the effect of SFCL on transmission line voltage level is minimized with the help of external source such as PWM converter