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Nowadays low-frequency oscillation of the interconnected power system has become increasingly prominent, and with large quantities of small hydropower connecting grid this problem becomes more seriously. It is very practical and significant to evaluate small signal stability of actual power system timely and efficiently and master its characteristics of small signal stability deeply. Based on the actual parameters of Hunan power grid and the interconnected power grid between central china and north china, this paper models the Hunan power system and builds the synthetic load model with small hydropower by PSASP. After analyzing the small signal stability of the Hunan power system integrated with small hydropower systematically and comprehensively, some Low-frequency oscillation modes and its strong correlation generators are found. By summarizing the regularities, some concrete solutions(PSS) are put forward, and their effectiveness are also tested.