The protection inductor serves for limiting the peak current in order to protect the thyristor switch of the pulsed magnetic field facility in case of a short circuit. Because of the high current and strong magnetic field, the Lorentz force in the protection inductor is large. This paper describes the calculation of the inductance and the optimization of the stresses in the protection inductor. A finite element analysis with the ANSYS software is used to calculate the magnetic field and stresses in the protection inductor. A three-dimensional static finite element analysis model of the inductor has been built for calculating the stresses in the copper coils and stainless steel rings as well as the static inductance. Furthermore, a harmonic finite element analysis model has been built to analyse effects such as the influence of eddy currents in the copper wires and induced current in the stainless steel rings on stress and inductance. Eddy currents cause an uneven distribution of stresses; induced current can decrease the stresses in the copper coils but increase those in the stainless steel rings. Both effects reduce the inductance. The typical maximum stresses in our design are 70 MPa in the copper coils and 210 MPa in the stainless steel rings; these are both below the yield strength of these materials. The inductance is 1.05 mH at the frequency of 50 Hz. The protection inductor has been manufactured according to the design and the performance testing has been successfully completed.