The increasing demand for electricity over the past few decades has been continuously urging for more reliable power systems. Power transmission line networks, due to their vast physical dimensions, are the most critical components of a complex power system concerning the direct lightning strike. Grounding systems are widely used to mitigate the transient overvoltages for the protection of electrical component and human safety. The goal of this paper is to investigate the effect of frequency dependence of soil electrical parameters on the performance of vertical and horizontal grounding electrodes subjected to direct lightning strike, considering a variable water content of soil. Four soil models that take into account the variation of soil water content are reviewed and compared. The numerical simulations are performed using a full-wave electromagnetic model based on the Finite Element Method (FEM) in the frequency range from 1 kHz to 5 MHz and applying different soil models with varying water content. Then, electromagnetic transient (EMT) compatible equivalent circuits of grounding electrodes are developed using Fast Relaxed Vector Fitting (FRVF). Typical first and subsequent return stroke current waveforms measured at two different locations are adopted. The results of this paper demonstrate the importance of considering the variation of soil water content in the transient response of grounding electrodes. Simulation results demonstrate that the frequency dependence of the soil parameters lead to a decrease of the potential rise of the grounding electrodes compared to the case where the soil parameters are assumed constant. The effect of soil water content on the grounding performance is also shown to be dependent on the soil type, value of soil water content, and length of electrode.