Power grids are progressively evolving toward increased integration of renewable energy sources. In modern power systems, fault currents have become a critical concern. Fault current limiters (FCLs) play a vital role in protecting electrical systems against overcurrent conditions caused by faults or disturbances. However, existing FCL designs often face challenges such as insufficient current-limiting capability, significant losses during normal operation, slow recovery, and delayed response times. To address these issues, various FCL technologies have been developed, including superconducting, permanent magnet-based, AC reactor, and DC reactor approaches. Nevertheless, each of these solutions presents inherent limitations and trade-offs. This study investigates a novel ferromagnetic DC reactor core geometry and evaluates its performance both with and without neodymium permanent magnets. Comprehensive experimental analyses demonstrate that the magnet-assisted core exhibits superior damping of the initial fault current peak, minimal losses during normal operation, rapid recovery time, and negligible operational delay. The proposed design effectively mitigates the impact of fault currents while overcoming key limitations associated with conventional FCL technologies.