DC flow on the power transformer windings can lead to severe half-cycle saturation issues and impose great threats on AC power systems. A transformer neutral direct current balancing device is proposed in this paper to address this issue. By injecting direct current into a grounding grid, the DC flow of power transformer windings can be compensated via proper control strategy and thus the biased working flux of power transformers can be mitigated. The simulation model, hardware architecture, and control strategies of the proposed device have been investigated in this paper. Both laboratory and a 220-kV substation field tests have been implemented. Test results demonstrate that, during monopolar operation of HVDC lines, the proposed device restrains the half-cycle saturation of power transformers effectively and economically. The neutral direct current balancing device opens the door to a new direction of restraining half-cycle saturation induced by HVDC monopolar operations.