The invention relates to a hybrid short-circuit fault current limiter and a current limiting method. The hybrid short-circuit fault current limiter comprises a current transfer branch and a fault current limiting branch, wherein the current transfer branch comprises a rapid mechanical switch and a power electronic switch in series. In a steady state, a current passes through the current transfer branch, and the loss during normal running is reduced; when a fault occurs, a switch on the transfer branch acts, and the current is transferred to the fault current limiting branch; the fault currentlimiting branch comprises a dual-split reactor and a switch, and a first winding of the dual-split reactor is connected in series with the switch and is connected in parallel with a second winding; the switch is switched on in the steady state, and the fault current limiting branch shows low impedance; and the switch is switched off when the fault occurs, and the fault current limiting branch shows high impedance. By matching of the current transfer branch and the fault current limiting branch, the loss of the current limiter during normal running is reduced, meanwhile, fault current limitingis achieved by the dual-split reactor, and running economy and reliability of the current limiter are improved.