The Ultra-low Frequency Oscillation (ULFO) has attracted much attention due to its field test capture in China, and it is believed that the ULFO is related to the hydraulic generator. To clarify the cause and innate essence of ULFO, the develop of the ULFO under different thermal-hydro power proportions is investigated. A small-signal model of two-machine system considering different thermal-hydro power proportions is established. Based on the small-signal model, the influence of hydropower proportion on the oscillation characteristics is analyzed in different conditions, and it is found that a higher proportion of hydro power results in a lower oscillation frequency, though the hydropower proportion is not the crucial cause in ULFO. Then Based on the eigenvalue analysis, it is observed that the essential cause of ULFO is the weak grid condition rather than the high hydropower proportion. The system connection strength determines whether the system is prone to ULFO. In addition, the participating factors of the generators’ significant state variables are obtained, which indicates that the governor plays a more vital role in ULFO in the case of weak grid connection. To verify the theoretical analysis, the simulations of the two-machine system and six-machine nine-node system are implemented, respectively. The results reveal that system with all thermal power is still prone to ULFO when the connection is weak. Conversely, when the connection is strong, the ULFO does not occur even if all the generators are hydraulic. Furthermore, in a weak grid condition, the oscillation frequency and damping ratio decrease with increasing hydropower proportion, which indicates that a high hydropower proportion deteriorates the ULFO problem.