The type‐4 wind turbine generators (WTGs) can provide inertial frequency response by implementing the virtual synchronous generator (VSG) concept. However, unstable torsional oscillations (TOs) would be induced in the multi‐mass‐spring drive‐train which can destabilize the entire power system. In this study, participation factor analyses are performed for a power system inclusive of a thermal unit and aggregated WTG system. The system's eigenvalues are characterized and the possible detrimental impacts of TOs on the inertia provision process and overall power system stability are demonstrated and the related stability limits are identified. A comprehensive active torsional oscillations damper (CA‐TOD) and a supercapacitor‐based energy storage system (ESS) are presented and discussed to implement the CA‐TOD. A state of charge (SoC) regulator is also employed to set the reference speed difference for the turbine‐generator. Small‐signal studies and electro‐magnetic transient (EMT) simulations are performed to evaluate the functionality of the CA‐TOD and SoC controller and estimate their impacts on the system's dynamics. The robust performance of the CA‐TOD is compared to the band‐pass filter‐based TOD by sweeping key control parameters of the VSG and emulating drive‐train parameter uncertainty. Key results are cross‐verified by EMT simulations of a multimachine power system.