The invention discloses a system for suppressing oscillation of a power system, relating to the technical field of power systems.The system comprises an electric power signal processing module, a rotating speed deviation processing module, an energy storage module and a conversion module which are connected in parallel.The system voltage Us serves as a reference vector, the output voltage fundamental wave amplitude of a conversion module is set to be Ui, the angle of the voltage Ui of the conversion module ahead of the system voltage Us is set to be delta, the loss of a switching device, the connection reactance of a transformer and the conversion impedance satisfy Z = R + jX, and the impedance angle a = arctan (X/R). An electric power signal processing module anda rotating speed deviationprocessing moduleconnected in parallelas well as an energy storage module and a conversion module are combined; the parallel energy storage type flexible alternating-current power transmission containing additional damping control can effectively suppress power oscillation of an extra-high-voltage alternating-current line, the damping ratio of an interconnection system can be increased, power oscillation on the extra-high-voltage line can be effectively suppressed, a new technical measure is provided for safety and stability of a large-area interconnection system, and the operation safety ofthepower system is improved.