This paper presents a centralized protection strategy for medium voltage dc (MVDC) microgrids. The proposed strategy consists of a communication-assisted fault detection method with a centralized protection coordinator and a fault isolation technique that provides an economic, fast, and selective protection by using the minimum number of dc circuit breakers (DCCBs). The proposed method is also supported by a backup protection which is activated if communication fails. The paper also introduces a centralized self-healing strategy that guarantees successful operation of zones that are separated from the main grid after the operation of the protection devices. Furthermore, to provide a more reliable protection, thresholds of the protection devices are adapted according to the operational modes of the microgrid and the status of distributed generators (DGs). The effectiveness of the proposed protection strategy is validated through real-time simulation studies based on the hardware in the loop (HIL) approach.