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In this paper, control of inter-area oscillation in power systems with high wind power penetration is achieved via doubly fed induction generator (DFIG). The DFIG is modeled in Matlabreg/Simulink. A two-area system is investigated with a wind farm connected in the area that exports power. Control schemes for active power and reactive power regulation are designed firstly. The paper finds that without active power and reactive power regulation, it is impossible to design an effective inter-area oscillation damping controller through DFIG machine side inverter. An auxiliary control loop for oscillation damping that adjusts the active power command can help damp the inter-area oscillation. Time domain simulations demonstrate the effectiveness of the control.