Current transformers (CTs) are the most widely used measurement instrumentation in power grids. Nevertheless, CT saturation gives rise to large measurement errors, which may have bad repercussions for the power system. In order to deal with the problem of CT saturation, a novel dual-core current transformer based on tunnel magnetoresistance sensor (DTCT) is proposed. Theoretical analyses, finite element method (FEM) simulations and accuracy tests are carried out to validate the practicability and effectiveness of the proposed DTCT. The simulation and experimental results manifest that the steady-state and transient characteristics of the DTCT are outstanding.