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This paper provides an algorithm based on the microhabitat theory and particle swarm for the problem of wide area controller parameters optimization. The method cans optimal parameters. According to multi-objects model of the problem, and reduce the difficulties and works in design for multi-machine power system damping controller. In the end of paper, a typical four-generator two-area testing system indicates that wide-area damping controller has a strong capability of damping area oscillation. The result showed that the algorithm validity and feasibility.