A fused electrolytic capacitor assembly that offers improved performance characteristics in a convenient and space-saving package is provided. More specifically, the fused electrolytic capacitor assembly contains an electrolytic capacitor element and a resettable fuse contained within a case. The capacitor assembly also contains a stress absorbing material that is positioned adjacent to and in contact with the resettable fuse. By selecting a stress absorbing material having a certain modulus and a certain degree of inherent flexibility, the present inventors believe the resettable fuse is better able to expand to its full capacity upon exposure to an excessive current. In this manner, the resettable fuse is able to better function during use.