The main objective of on-line dynamic security assessment is to take preventive action if required or decide remedial action if a contingency actually occurs. Stability limits are obtained for different contingencies. The mode of instability is one of the outputs of dynamic security analysis. When a power system becomes unstable, it splits initially into two groups of generators, and there is a unique cutset in the transmission network known as critical cutset across which the angles become unbounded. The knowledge of critical cutset is additional information obtained from dynamic security assessment, which can be used for initiating preventive control actions, deciding emergency control actions, and adaptive out-of-step relaying. In this article, an analytical technique for the fast prediction of the critical cutset by system simulation for a short duration is presented. Case studies on the New England ten-generator system are presented. The article also suggests the applications of the identification of critical cutsets.