This paper introduces a novel method of designing wide area control (WAC) based on a discrete linear quadratic regulator and Kalman filtering based state-estimation that can be applied for real-time damping of interarea oscillations of wind integrated power grid. The main advantages of the proposed method are that the architecture provides online coherency grouping that properly characterizes real-time changes in the power grid and online wide-area signal selection based on residue method for proper selection of the WAC signals. The proposed architecture can, thus, accurately monitors changes in the power grid and select the appropriate control signal for more effectively damping the interarea oscillation when compared to the conventional local signal based power system stabilizers or offline based WAC designs. The architecture is tested on a wind integrated two-area system and the IEEE 39 bus system in order to show the capability of the proposed method.