The invention relates to a DC power distribution network multi-function fault current controller and a control method. The multi-function fault current controller is formed by a series convertor loop(1) and a parallel convertor loop (2). The series convertor loop (1) is formed by an NPC full-bridge circuit, an LCL filter, a DC capacitor and a DC bleeder resistor. The parallel convertor loop (2) is formed by an NPC three-level DAB circuit. Under a stable state, the fault current controller can compensate circuit voltage surge, sag and pulsation; and under a fault state, the fault current controller can provide current-limiting inductance and backward voltage, thereby comprehensively realizing multiple functions of voltage regulation of a DC power distribution network and current limiting and blocking of the fault current, and improving use efficiency of the fault current controller.