This study presents a new Multi‐Step Bridge‐type Fault Current Limiter (MSBFCL) for Fault Ride‐Through (FRT) capability enhancement of Permanent Magnet Synchronous Generator (PMSG)‐based wind turbine. In this structure, multi‐resistors in parallel with the Insulated‐Gate Bipolar Transistor (IGBT) switches are used to provide a controllable discrete step resistance. Considering the voltage sag depth at the Point of Common Coupling bus, the MSBFCL inserts the suitable limiting resistance in the faulted line path to limit short circuit current and boost the terminal voltage at determined value. Limiting the fault current based on multi‐step resistance prevents considerable overvoltage at the Grid Side Converter (GSC) of the PMSG and saturated operation mode of GSC control system in low voltage sag condition, which can lead to loss of controllability. The MSBFCL scheme is compared to the Superconducting Fault Current Limiter (SFCL) and Braking Chopper (BC) schemes. Simulations were carried out in Matlab/Simulink environment. Simulation results demonstrate that the MSBFCL provides a simple and effective solution to enhance the FRT capability of the PMSG in the whole range of voltage sag level and is advantageous over the SFCL and BC schemes.