A terminal bushing having integral overvoltage and fault current protection includes an insulator having an upper and a lower chamber. Nonlinear resistors are disposed in the upper chamber between a top terminal and an intermediate terminal which are mounted on the insulator. The top terminal, the nonlinear resistors and the intermediate terminal form a first current path through the bushing. The bushing also includes a pair of mounting arms which support a current limiting dropout fuseholder. The fuseholder is disposed in series between the top terminal and a bushing stud which is retained in the lower chamber of the bushing body. A second current path through the bushing is thus formed by the top terminal, the fuseholder and the bushing stud.