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Integration of large amount of wind energy in an interconnected power system creates concerns about secure, reliable and economical operation of the entire power system. So it becomes very necessary to investigate the impacts of wind power infeed on the dynamic behavior of the power system. This paper presents the impacts of large amount of wind power in feed on the rotor oscillatory stability. Wind turbine generator types currently employed in wind farms, optimal location of the wind farms in the interconnected power system, reliable optimal dispatch of the wind power and the degree of tie line congestion have been thoroughly investigated. Kundur's two area network model has been utilized to study the mentioned impacts on the overall system using MATLAB/Simulink. Some of the key results show that the damping characteristics of the wind farms critically depend on the location of interconnection in the network and the optimal wind energy dispatch. Increasing the penetration of the wind energy generally improves the damping of the inter area oscillations. Moreover, reducing stress on the weak tie lines also improves the inter area mode of oscillation. So with the investigation of these impacts this study is helpful for the planning of new wind power projects.