The frequency is an important operation parameter for the control, protection, and stability of a power system. The frequency as a key index of power quality can be indicative of system abnormal conditions and disturbances. Due to the sudden change in generation and loads or faults in power system, the frequency is supposed to deviate from its nominal value. It is essential that the frequency must be maintained very close to its nominal frequency. An accurate monitoring of the power frequency is essential to optimal operation and prevention for wide area blackout. As most conventional frequency estimation schemes are based on DFT filter, it has been pointed out that the gain error could cause defects when the frequency is deviated from nominal value. This paper presents an advanced frequency estimation technique using gain compensation to improve the performance of DFT filter based techniques. To evaluate performance of the proposed algorithm, the 765kV T/L system in Korea is simulated by EMTP-RV software. The proposed technique can reduce the gain error caused when the power system frequency deviates from nominal value.