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In this paper, a novel nonlinear robust damping controller is proposed to suppress power oscillation in interconnected power systems. The proposed power oscillation damping controller exhibits good nonlinearity and robustness. It can consider the strong nonlinearity of power oscillation and uncertainty of its model. First, through differential homeomorphic mapping, a mathematical model of the system can be transformed into the Brunovsky standard. Next, an extended state observer (ESO) estimated and compensated for model errors and external disturbances as well as uncertain factors to achieve dynamic linearization of the nonlinear model. A power oscillation damping controller for interconnected power systems was designed on a backstepping-fractional order sliding mode variable structure control theory (BFSMC). Compared with traditional methods, the controller exhibits good dynamic performance and strong robustness. Simulations involving a four-generator two-area and partial test system of Northeast China were conducted under various disturbances to prove the effectiveness and robustness of the proposed damping control method.