A wide area power system stabilizer (WAPSS) using fixed parameters may not be able to adapt when the system structure and operating mode change. This paper describes use of model free adaptive control (MFAC) in a WAPSS design that allows the controller to adaptively adjust. An MFAC method was developed for wide area damping control in power systems that helps the closed loop system stable. The MFAC parameters are selected such that the controller performs well at the initial operating point based on the design of the fixed-parameter WAPSS. Simulations of a two-area power system and an eight-machine power system show that the improved MFAC controller adapts well to system changes and efficiently damps inter-area oscillations.