Current transformer (CT) disconnection in busbar can lead to erroneous operation of busbar differential protection. The existing methods for handling CT disconnection have not taken into account how to re-enable the protection in the case of high-impedance faults (HIFs). If the two types of faults cannot be distinguished in a timely manner, it can adversely affect the safe operation of the power grid. This paper provides a theoretical analysis of the differences between differential current and restraining current in the case of busbar CT disconnection faults and HIFs. Based on these characteristics, this paper proposes a criterion for CT disconnection fault blocking and a criterion for HIFs opening. Simulation results demonstrate that this method can effectively and accurately identify HIFs even in the presence of CT disconnection faults.