ABSTRACT In this paper, a new method based on the Tufts–Kumaresan (TK) algorithm is used to process nonstationary signals and extract system modes. This new algorithm for mode estimation is proposed to improve estimation accuracy under dynamic conditions. The key contribution in TK is the use of multiple orthogonal sliding windows rather than a single pair of sliding windows. Simulation results under various scenarios, such as different types of faults and load changes are used to evaluate the performance of the proposed method. The proposed method will accurately extract system modes. This method will also reduce the required memory and the calculation time of estimation in nonstationary signals. In complement to successful applications in studying the dynamic behavior of the power system, identifying and analyzing low-frequency electromechanical oscillations, and removing signal noise, this method can accurately estimate the modes of a power system. To validate the accuracy of the proposed method, the Wavelet and the Prony methods have been used for comparison. The proposed method is implemented using simulated ringdown data of standard two-area power system and real measurement data of the WSCC system breakup on 10 August 1996.