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An optimized configuration of bidirectional Z-source circuit breaker using a coupled inductor is introduced for the fault isolation in low-voltage dc microgrid. The proposed circuit breaker is designed to operate with a single coupled inductor for bidirectional power flow. Use of the single coupled inductor for the power flow in both the directions reduces the component count. In this article, the operating principle of the breaker is explained for a short-circuit fault condition and breaker design criteria are derived. The performance of the circuit breaker is evaluated by carrying out a MATLAB simulation study. The functional prototype is developed to validate the breaker capabilities. Experimental results show that the fault is cleared within few microseconds. Additionally, the breaker is tested under the step load change condition for a current five times the steady-state rated current of the breaker and results are satisfactory. [ABSTRACT FROM AUTHOR]