A fused electrolytic capacitor assembly that offers improved performance characteristics in a convenient and space-saving package is provided. More specifically, the fused electrolytic capacitor assembly contains an electrolytic capacitor element and a surface mount fuse that are contained within a case and connected to a common anode termination. During initial production, the electrolytic capacitor element and fuse are connected to the anode termination so that the fuse is bypassed during testing of the individual capacitor element. After testing, the anode termination may be cropped so that the fuse and capacitor element become connected in series. Thus, during use, the fuse will disintegrate in response to an excessive current resulting from a short circuit discharge, which breaks the electrical connection between the capacitor element and limits the likelihood of fire or other damage remaining circuit elements.