The single bridge-arm multiplexed MMC (SBM-MMC) topology implements low-frequency switching devices to achieve alternating arm conduction and waveform rectification, transforming modulated half-cycle waveforms into complete sinusoidal outputs for AC interconnection. This innovative configuration demonstrates substantial advantages over traditional MMC designs through its reduced submodule count, leading to considerable weight savings in power conversion systems. Under grid fault conditions, however, the emergence of high-magnitude fault currents poses operational challenges that may force system shutdown. To address these reliability concerns during AC network disturbances, this research introduces a novel fault management approach, with comprehensive validation performed via Matlab/Simulink simulation studies.