Abstract In recent years, DC current-limiting fuses have played a crucial role in the comprehensive power systems of ships, rail transport, and new energy sectors, ensuring the safe and reliable operation of DC power systems. However, with the increase in the capacity of DC power systems, short-circuit faults can lead to a rise in short-circuit current at rates of up to 40 A/μs, with peak short-circuit currents reaching up to 105KA. This poses higher demands on the accuracy and speed of fuse diagnostics to interrupt short-circuit currents. To address this issue, this paper introduces a fault diagnostic algorithm based on FPGA that can calculate the rise rate of short-circuit currents in real-time: employing FPGA with its high integration, abundant logic resources, and parallel data processing capabilities as the core of the measurement and control system to enhance the speed of short-circuit fault diagnosis from a hardware perspective; replacing the common large current trip protection and DDL protection algorithms with the Newton interpolation algorithm. This improvement calculates the rise rate of each current data point instead of the average rise rate over a period, thus enhancing the speed and accuracy of short-circuit fault diagnosis from a software perspective. The paper also discusses the design of the system’s hardware and software and the construction of the experimental platform. Simulation and experimental results show that the fault diagnosis time of the algorithm has been reduced from 98μs to 36μs, with the numerical error in the short-circuit current rise rate within 2%, and a significant reduction in the peak value of short-circuit current, meeting performance requirements and effectively ensuring the safe and reliable operation of DC power systems.