This paper introduces a new scheme, which uses a multifunctional superconducting device that can be used as an energy storage and as a fault current limiter. It is denoted as a superconducting magnetic energy storage - fault current limiter (SMES-FCL) and is modeled as a number of pancakes. It is connected to a wind turbine power system via tertiary transformer and power converters. A complete control scheme is built to achieve effective power transfer between the superconducting coil and the power system during normal operation to smooth the wind turbine output power. The fault current limiting function is implemented using a new technique that inserts a few pancakes from the whole SMES coil into the main electrical system during the fault and isolates the remaining pancakes. The number of pancakes used to limit the fault is quenched and operates as a resistive fault current limiter. The whole system including the wind turbine, the SMES-FCL model, and the interface circuit are implemented using PSCAD/EMTDC computer package. Also, the control scheme of SMES-FCL is built based on a feedback current signal to enable its operation into the two modes.