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The well-developed unified power flow controller (UPFC) has demonstrated its capability in providing voltage support and improving power system stability. The objective of this paper is to demonstrate the capability of the UPFC in mitigating oscillations in a wind farm integrated power system by employing eigenvalue analysis and dynamic time-domain simulation approaches. For this purpose, a power oscillation damping controller (PODC) of the UPFC is designed for damping oscillations caused by disturbances in a given interconnected power system, including the change in tie-line power, the changes of wind power outputs, and others. Simulations are carried out for two sample power systems, i.e., a four-machine system and an eight-machine system, for demonstration. Numerous eigenvalue analysis and dynamic time-domain simulation results confirm that the UPFC equipped with the designed PODC can effectively suppress oscillations of power systems under various disturbance scenarios. [ABSTRACT FROM AUTHOR]