Hybrid DC circuit breakers combine mechanical switches with a redirecting current path, typically controlled by power electronic devices, to prevent arcing during switch contact separation. The authors’ past work includes a bipolar hybrid DC circuit breaker that effectively redirects the fault current and returns it to the source. This reduces arcing between the mechanical breaker’s contacts and prevents large voltage overshoots across them. However, the breaker’s performance declines as the upstream line inductance increases, causing overvoltage. This work introduces a modification to the originally proposed hybrid DC breaker to make it suitable to use anywhere along DC grid lines. By using a switch-controlled surge arrester in parallel with the DC breaker, part of the arc energy is dissipated in the surge arrester, preventing an overvoltage across the mechanical switches. Based on the experimental results, the proposed method can effectively interrupt the fault current with minimal arcing and reduce the voltage stress across the mechanical switches. To address practical fault currents, tests at high fault currents (900 A) and voltage levels (500 V) are conducted and compared with simulation models and analytical studies. Furthermore, the application of the breaker for the protection of DC distribution grids is illustrated through simulations, and the procedure for designing the breaker components is explained.