This paper investigates the transient behavior of a power supply comprising paralleled power modules when one of its modules fails. A detailed transient analysis is presented using the principle of superposition and the state variable technique to investigate the effects of the faulty module on system performance. A fault compensation strategy is proposed to allow smooth ride-through during fault. This enhances the supply's reliability and robustness. The analysis results and compensation methods are verified via simulation and experiments for the case of three paralleled buck converters with a shorted switch, and smooth ride-through of output voltage is achieved.