When wind turbines contribute to system frequency support using virtual synchronous generator (VSG) control, conventional VSG methods often fall short of meeting operational demands, particularly in terms of inertia and frequency support. In this study, considering both the frequency regulation and dynamic performance of VSG, a novel parameter design method that enhances frequency modulation capabilities is proposed in this paper. Initially, VSG control is integrated into the grid-side converter of a direct-drive permanent magnet synchronous generator (D-DPMSG) wind turbine. A small-signal model of the D-DPMSG-VSG active power is then formulated to analyze how the moment of inertia and damping coefficient impact system stability. Subsequently, ensuring that system parameter constraints are met, the key parameters of VSG are adaptively designed to dynamically adjust the system’s frequency and output power during transient responses. Finally, simulation results based on D-DPMSG-VSG in MATLAB/Simulink validated the feasibility, effectiveness, and advantages of the proposed parameter-adaptive VSG control strategy for enhancing the frequency modulation (FM) performance of wind turbines.