This paper proposes an effective fault management scheme for medium-voltage direct current (MVDC) networks, which includes a virtual-impedance-based fault current limiter (VI-FCL) on the DC side and a positive-negative-sequence (PNS) control scheme on the AC side. Depending on the fault current value, different protection strategies are adopted, which include either isolating the fault by opening circuit breakers or riding through the fault with the proposed VI-FCL. It is known that unbalanced grid voltage can be found in conventional AC distribution feeders due to unbalanced loading conditions among three phases. The unbalanced grid voltage could induce double line-frequency (2 ) ripples on both DC voltage and current, which could thereby trigger protection malfunction in the DC sub-sections. Therefore, the PNS control scheme is used to eliminate the 2 ripples of both DC voltages and currents caused by unbalanced AC voltages. Furthermore, a detailed 2 mathematical model of the MVDC network under unbalanced AC voltage condition is derived to investigate how the 2 ripple propagates across the network. A voltage source converter based multi-terminal MVDC network is built to test DC faults with different fault currents, unbalanced AC voltages, and different control schemes. The test results verify both the proposed fault management scheme and the 2 ripple propagation analysis.