This paper analyzes the influence of the doubly fed induction generator (DFIG) based wind farm (WF) participating in the frequency response (FR) on the oscillation modes of the power system and proposes a hybrid modulated active damping scheme to mitigate the potential power oscillations. The FR control would excite additional lightly damped electro-mechanical oscillation mode and deteriorate the damping for the primary interarea oscillation mode inside the power system. Moreover, the internal damping effect on the turbine torsional oscillation would be weakened resulting shaft damage risk if FR is required by the WF. The frequencies of those modes are usually close to each other. By integrated hybrid multiple active damping loops into the active and reactive power controller of the WF respectively, the damping control on all the oscillation modes can be improved at the same time. The analysis and effectiveness of the proposed scheme in this paper are verified by the time-domain simulations.