Transient characteristics of an MHD power generating system including a DC-AC inverter are analyzed using a time-dependent quasi-one-dimensional approximation. The generator model considered is Faraday type of U-25 class with heavy-oil and air combustion gas. It is found that a short-circuited fault of the invertor may become more serious than an open-circuited fault, resulting in significant gas velocity reduction. An open-circuited fault, if retained for more than 5-8 ms, can substantially increase the gas velocity at the upstream end of the fault region. A protection system composed of a fast-acting DC circuit-breaker and an emergency load resistance is proposed. The switching speed of the DC breaker must be about 500 microsec to stop a pressure increase, resulting, for example, from the short-circuiting of 20 electrode pairs, before it reaches 120% of the initial level.