In this study, a novel MOS-channel diode embedded in a SiC superjunction MOSFET (MCD SJ-MOSFET) is proposed and analyzed by means of numerical TCAD simulations. Owing to the electric field shielding effect of the P+ body and the P-pillar, the channel diode oxide thickness (tco) of MCD can be set to very thin while achieving a low maximum oxide electric field (EMOX) under 3 MV/cm. Therefore, the turn-on voltage (VF) of the proposed structure was 1.43 V, deactivating the parasitic PIN body diode. Compared with the SJ-MOSFET, the reverse recovery time (trr) and the reverse recovery charge (Qrr) were improved by 43% and 59%, respectively. Although there is a slight increase in specific on-resistance (RON), the MCD SJ-MOSFET shows very low input capacitance (CISS) and gate to drain capacitance (CGD) due to the reduced active gate. Therefore, significantly improved figures of merit RON × CGD by a factor of 4.3 are achieved compared to SJ-MOSFET. As a result, the proposed structure reduced the switching time as well as the switching energy loss (ESW). Moreover, electro-thermal simulation results show that the MCD SJ-MOSFET has a short circuit withstand time (tSC) more than twice that of the SJ-MOSFET at various DC bus voltages (400 and 600 V).