An algorithm for the design of decentralized output feedback stabilizers for large-scale electric power systems is proposed. In the proposed approach, the generators which are most effective for stabilizer applications are first identified by using participation factors. Then an efficient algorithm based on decentralized pole assignment is proposed for the determination of the parameters of the power-system stabilizers which, due to the difficulty associated with communication among the geographically dispersed generating stations in a large power system, are essentially decentralized compensators using local generator outputs as their feedback signals. The proposed method is computationally efficient and can be applied to any large-scale system. The simplicity and effectiveness of the proposed method are demonstrated by an example of stabilizer design for a practical power system. >