Due to their efficient renewable energy consumption performance, AC/DC hybrid microgrids have become an important development form for future power grids. However, the fault response will be more complex due to the interconnected structure of AC/DC hybrid microgrids, which may have a serious influence on the safe operation of the system. Based on an AC/DC hybrid microgrid with an integrated bidirectional power converter, research on the interaction impact of faults was carried out with the purpose of enhancing the safe operation capability of the microgrid. The typical fault types of the DC sub-grid were selected to analyze the transient processes of fault circuits. Then, AC current expressions under the consideration of system interconnection structure were derived and, on this basis, we obtained the response results of non-fault subnets under the fault process, in order to reveal the mechanism of DC fault propagation. Subsequently, a current limitation control strategy based on virtual impedance control is proposed to address the rapid increase in the DC fault current. On the basis of constant DC voltage control in AC/DC hybrid microgrids, a virtual impedance control link was added. The proposed control strategy only needs to activate the control based on the change rate of the DC current, without additional fault detection systems. During normal operations, virtual impedance has a relatively small impact on the steady-state characteristics of the system. In the case of a fault, the virtual impedance resistance value is automatically adjusted to limit the change rate and amplitude of the fault current. Finally, a DC fault model of the AC/DC hybrid microgrid was built on the RTDS platform. The simulation and experimental results show that the control strategy proposed in this paper can reduce the instantaneous change rate of the fault state current from 19.1 kA/s to 2.73 kA/s, and the error between the calculated results of equivalent modeling and simulation results was within 5%. The obtained results verify the accuracy of the mathematical equivalent model and the effectiveness of the proposed current limitation control strategy.