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The frequent occurrence of power grid blackouts draws more and more attention on the mechanism of cascading failure and the vulnerability of power grid. In order to analyze the problem existed in the power grid and provide useful reference for power grid maintenance, a power grid vulnerability identifying method based on complex network theory is proposed in this paper. The weighted topological model of power grid is constructed firstly. Then the important network parameters are analyzed and the spread mechanism of cascading failure in large-scale power grid is researched. At last, the vulnerability of power grid can be obtained by the computing of network efficiency and damage index. In the simulation, the IEEE 57-bus test system is used as the example. The topological feature of the system is obtained by the static frame analysis, and the vulnerability of power grid is identified by the network topological feature and dynamic frame analysis. The result validates the method proposed in this paper is effective.