In this paper, a dynamic output feedback controller designed for damping enhancement of inter-area oscillations using wide-area signals as their feedback signals. The packet-based communication network is used to transfer wide-area signals. Communication network constraints such as networked induced delays, packet dropouts, and packet disorder are captured in the closed-loop power system by constructing as networked control system (NCS) model. Stabilization of closed-loop system with aforesaid problems have been formulated as the delay-dependent control problem. Sufficient conditions for the design of a dynamic controller are formulated in form of linear matrix inequalities by using quadratic Lyapunov criterion. In addition to the dynamic controller, a robust pole placement approach is applied to place the closed-loop poles in the prescribed stability region. Nonlinear simulations on a case study namely a two-area four-machine power system is performed to evaluate the performance of the proposed controller and its performances are compared with power oscillation damping (POD) controller and H∞ controller. © 2017 IEEE.