In cellular networks, the application of device-to-device (D2D) technology can effectively improve the system spectral efficiency. In order to research the performance of D2D communication in multi-cell cellular system, this paper proposed a dynamic power control algorithm based on interference restricted area to solve the interference problem between D2D communication and cellular communication in multi-cell. First we use Laplace Transform to analyze the interference, then based on the analyze of outage probability and area spectral efficiency, through system-level simulation, research the impact of D2D user equipment density, D2D communication distance and different interference restricted area sizes on outage probability and area spectral efficiency. Simulation results show that interference restricted area can effectively reduce communication outage probability, as well as improve system area spectral efficiency.