DC series-parallel power flow controller (SP-PFC) is a highly efficient device to solve the problem of uncontrolled line current in the bipolar DC distribution system. However, its potential in fault current limiting is not fully explored. In this paper, a self-adaptive action strategy (SAAS) and a parameter optimization method of SP-PFC in bipolar DC distribution systems are proposed. Firstly, the common- and different-mode (CDM) equivalent circuits of the bipolar DC distribution system with SP-PFC in different fault stages are established, which avoids the line coupling inductance. Based on this, the influence of different parameters and line coupling inductance on the fault current limiting capability are investigated. It is found that the SP-PFC has the best fault current limiting capability when the capacitance and inductance of filter are inversely proportional. To realize the adaptability of fault current limiting capability under different fault severities, the SAAS of SP-PFC is proposed. The validity of the CDM equivalent circuits and parameter optimization method, and the effectiveness of the SAAS are verified by simulations and experiments.