A subsea fuse assembly is provided. The subsea fuse assembly is adapted to be operated in a pressurized environment. The subsea fuse assembly includes an enclosure adapted to be filled with a dielectric liquid, and a pressure compensator including a flexible element for pressure compensation. The subsea fuse assembly also includes a first penetrator and a second penetrator each passing through a wall of the enclosure for leading a first electric conductor and a second electric conductor, respectively, into the enclosure. The subsea fuse assembly includes a fuse arranged inside the enclosure and connected between the first electric conductor and the second electric conductor.