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Operating electrical power system in a large scale can disturb the stability of the rotor of the synchronous generator on the generating side which can result in failures. This research is intended to investigate the effect of dynamic load parameter on power system oscillation damping. The behavior of power system after the disturbance on various value of dynamic load parameter are shown with Simulink Matlab simulation. The developed power system oscillation model consists of a dynamic load and a synchronous generator. According to the model, a block diagram is created. Thus, it can depict the interaction between the dynamic load and the power system. The results of this research show that the drop of reference voltage results in the increase of rotor angle (∆δ) and the decrease of terminal voltage (∆Vt). If the ratio of transient exponential constant (npt) with the static exponential constant (nps) is equal to one, the curve of ∆δ and ∆Vt will not oscillate. If npt/nps < 1, ∆δ curve will oscillate above the steady state value and ∆Vt will oscillate below the steady state value. Furthermore, If npt/nps > 1, ∆δ curve will oscillate below the steady state value and ∆Vt will oscillate aboce the the steady state value. Moreover, the higher nps, the value of ∆δ becomes higher and the value of ∆Vt becomes smaller. The last point is that the higher Tp, the transition of ∆δ and ∆Vt into steady state become longer.