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The impacts of large scale grid-connected wind farm on direct-driven permanent magnet synchronous generator （PMSG） type are discussed on the small signal stability performances of power systems. Firstly, a simplified practical model of wind farm of PMSG type is derived for analyzing small signal stability. The rotor-flux- oriented control strategy is applied to the modelling of PMSG. Secondly, the framework of small signal stability analysis incorporating wind farm of PMSG type is built. Finally, the different simulation scenarios based on the IEEE 3-generator-9-bus test system as benchmark are designed to conduct the eigenvalue analysis and to assess the impacts of wind farm of PMSG type on power system small signal stability. Some conclusions are drawn with simulation results.