The invention discloses an active control current-limiting system for fault current and a control method thereof. The active control current-limiting system comprises series DVR modules, DC-links and a parallel converter, wherein a series side is formed by a three-single-phase structure; each phase comprises an L, a C1 filter link, a series transformer T, one DVR module and one DC-link; an each DC-link comprises a current-limiting inductor L1, a bleeder resistor rf, a D5 and a bidirectional thyristor T3. LC filters are used for filtering out harmonic waves, and the input time of the bleeder resistors is controlled through regulating the duty ratios of controlled tubes T2, so that current is limited below a specific value. Stabilized capacitors C are connected between the three-single-phase series side and the PWM parallel converter in parallel; and the PWM parallel converter is formed by a three-phase full bridge. Improvement of the voltage quality of a power network system, governance of harmonic current and a short-circuit fault current limiting function can be achieved and the electric security is improved.