In this paper the newly developed discrete-time adaptive sliding mode control method is proposed and applied to the power system stabilization problem. In contrast to the conventional continuous-time sliding mode controller, the proposed method is developed in the discrete-time domain and based on the input/output measurements instead of the continuous-time and the full-states feedback, respectively. Because the proposed control method has the adaptivity property in addition to the natural robustness property of the sliding mode control, it is possible to design the power system stabilizer which can overcome both the minor variations of the parameters of the power system and the diverse operating conditions and faults of the power system. Mathematical proof and the various computer simulations are done to verify the performance and stability of the proposed method.