In this study, a zero circulating current (ZCC) modulation technique is proposed for isolated bidirectional DC–DC converter (IBDC). The operating modes of the proposed modulation technique for the bidirectional dual active bridge DC–DC converter have been discussed and analysed. The proposed ZCC modulation not only reduces the current stress but it also eliminates the circulating power flow (CPF). In forward mode, the fixed 50% duty cycle and pulse width modulation signals are applied to the high voltage and low voltage bridges of IBDC converter, respectively. In reverse mode, the switching pattern is interchanged to reverse the power flow. The rising and falling edge phase-shift ratios are introduced for the two waveforms which help in identification of the ZCC switching. Condition on falling edge phase-shift ratio is determined to eliminate the CPF in the IBDC. This study also addresses the impact of the CPF on performance of the IBDC. The simulation and experimental results validate the proposed ZCC modulation for the IBDC.