DC power systems have emerged as a cost-effective solution for electric power generation and transmission, challenging the dominance of AC distribution systems. However, a comprehensive efficiency comparison between DC and AC microgrids remains understudied. This study seeks to explore and conduct a thorough survey on development and designing of DC microgrids to address this gap. Firstly, a comprehensive literature review comparing the efficiencies of AC and DC microgrids has been presented. The analysis highlights the superior efficiency of DC distribution systems over AC systems, supported by detailed advantages. Secondly, hardware implementation has been performed to directly compare the efficiency of DC versus AC systems. Research validity and application are further improved by the hardware prototype’s scalability, which in simulation allows for a thorough assessment of system stability over a range of scenarios from four to six terminals. Test results from the built hardware prototype demonstrate an astounding 15% increase in efficiency using the DC system compared to the AC system, demonstrating its potential for improved performance in real-world scenarios. In simulation results, the designed DC microgrid demonstrates stable voltages of 500V under steady state operation and rapid recovery within 80 ms under both symmetrical and asymmetrical faults has been observed. The research being investigated utilizes hardware implementation and simulation to provide useful insights into the efficiency and stability of DC microgrids in comparison to AC systems. These results are important for developing robust power distribution networks in modern energy environments, promoting sustainability and dependability in infrastructure growth.