The fault ride through capability and fast controller action makes doubly fed induction generator based wind energy conversion system to actively participate in power oscillation damping. This article describes a coordinated reactive power control from grid side converter along with active crowbar scheme for doubly fed induction generator which can actively participate in power oscillation damping, and thus improve the transient stability margin of entire power system. For a reactive power oscillation damping ((Formula presented.) power oscillation damping), it is essential that the phase of the modulated output is tightly controlled to achieve a positive damping. Detailed 3 generator 9 bus Western System Coordinating Council system is modeled in PSCAD/EMTDC with the generator dynamics. The dynamics in power flows generator rotor speeds and voltages are analyzed followed by a three-phase fault in the power system. A set of comprehensive case studies are performed to verify the proposed control scheme. © The Author(s) 2018.