The direct current circuit breaker (DCCB) is extensively employed in DC microgrid applications to protect the network during faults. However, numerous DC converters are combined in parallel to form a DC microgrid, which creates a large network inductance. The grid stores energy during regular operation, which repels instantaneous current breaking, and this stored energy needs to be eliminated after current breaking. Conventional topologies use different energy absorption methods to dissipate the stored energy after breaking the current. In this paper, an efficient bidirectional DC circuit breaker (EBDCCB) topology is introduced to extract and reuse this energy instead of dissipating it. The proposed topology has bidirectional power flow capability to meet the requirements of DC microgrid applications as energy storage devices are frequently utilized. Furthermore, EBDCCB shows drastically improved performance in terms of current breaking time, voltage stress, regenerated average current, and energy recovery efficiency compared to the conventional DCCB topology. The mathematical modeling and sizing of the components used in the proposed EBDCCB are elaborately analyzed, and detailed performance testing is presented along with extensive PSIM software simulation. Additionally, an experimental investigation is conducted on a laboratory-scale 48 V/1 A prototype.