The paper describes the parameter tuning of power system stabilizer (PSS) for a power plant based on hybrid system modeling. The existing tuning method based on bode plot and root locus is well applied to keep power system stable. However, due to linearization of power system and an assumption that the parameter ratio of the lead-lag compensator in PSS is fixed, the results cannot guarantee the optimal performances to damp out low-frequency oscillation. Therefore, in this paper, hybrid system modeling, which has a DAIS (differential-algebraic-impusive-switched) structure, is applied to conduct nonlinear modeling for power system and find optimal parameter set of the PSS. The performances of the proposed method are carried out by time domain simulation with a single machine connected to infinite bus (SMIB) system.