The main function of power system stabilizer (PSS) is suppressing the low-frequency oscillation of the power system to improve the dynamic stability of power system. In this paper, the pole-placement approach and full phase-compensation method are used to design the parameters of a derivative power system stabilizer (DPSS) base on electrical torque components. The small-signal model of the power system is used to study the dynamic performances under different system conditions. Also, the effect of a transient gain reduction (TGR) on the damping performance is examined. The tracking control law is obtained with a pole placement technique. Finally, the advantage of the proposed method with the numerical simulation is show.