This paper proposes a parameter coordination optimization design of Power System Stabilizer (PSS) based on an improved Quasi-Affine Transformation Evolutionary (QUATRE) algorithm to suppress low-frequency oscillation and improve the dynamic stability of power system. To begin, the Simulated Annealing (SA) algorithm randomly updates the globally optimal solution of each QUATRE iteration and matches the inferior solution with a certain probability to escape the local extreme point. This new algorithm is first applied to power system. Second, Since damping ratio is one of the criteria to measure the dynamic stability of power system, this paper sets the objective function according to the principle of maximization of damping coefficient of electromechanical mode, and uses SA-QUATRE to search a group of global optimal PSS parameter combinations to improve the stability margin of the system as much as possible. Finally, the method's rationality and validity were validated by applying it to the simulation examples of IEEE 4-machine 2-area system with different operation states. The comparison with the traditional optimization algorithm shows that the proposed method has more advantages for multi-machine PSS parameter coordination optimization, and can restrain the low-frequency oscillation of power system more effectively and enhance the system stability.