An encapsulated fuse assembly with a corona shield for use in high voltage underground power distribution systems. The fuse assembly includes a fuse encapsulated within an insulative outer housing. The outer surface of the fuse is coated with an electrically conductive material which is in electrical connection with one of the fuse terminals and extends along the outer surface of the fuse body to a point intermediate the other terminal leaving a portion of the fuse body not coated with the conductive material. Preferably, at least the terminal of the fuse not in contact with the conductive material is enveloped by an electrically conductive insert disposed within the insulative outer housing which along with the conductive coating establish an effective corona shield around the fuse without providing an alternate electrical circuit between the fuse terminals. The fuse assembly may include a fuse spacer which provides an electrical extension to the fuse so that different size fuses may be utilized within a standard size housing.