The problem of traditional impedance-based harmonic current suppression methods exacerbating virtual synchronous generator (VSG) fault current is highlighted when the power grid experiences a symmetrical fault transient. The principle of the traditional impedance reshaping-based harmonic current suppression method is introduced. Based on the VSG harmonic impedance model, the mechanism by which this traditional method exacerbates VSG fault current during asymmetric faults in the power grid is revealed. Based on this, a method is proposed for the coordinated suppression of VSG harmonic current and fault current. The method introduces a virtual inductance to reshape the equivalent impedance from the grid fault point to the VSG to achieve coordinated suppression in VSG grid-connected operation. This approach improves power quality and enhances the fault ride-through capability of VSG. Finally, the correctness and effectiveness of the proposed control strategy are verified through simulations.