In this paper, the effects of increased wind power penetration by doubly fed asynchronous generators (DFAGs) on oscillation damping are investigated. With the help of an illustrative example, it is shown that the general trend for DFAGs is to increase interarea oscillation damping. However, there are exceptions for certain penetration levels (not necessarily large), for which the voltage control (VC) option of DFAGs can reduce damping. It is also shown that the modulation of active power generation of wind turbines is a powerful tool to introduce additional damping to interarea oscillations through a simple wind power system stabilizer design. The general trend for increased oscillation damping is verified in the case of a large interconnected system encompassing Southeastern Europe for a projected high level of wind penetration in Greece. For the same system, it is also shown that low-damping voltage oscillations possibly introduced by the VC mode of DFAGs can be adequately damped by properly adjusting control parameters.