Locating low frequency oscillation sources exactly and taking appropriate control measures to enhance system damping and suppress system oscillations are an important guarantee for the secure and stable operation of power grids. Therefore, this paper proposes an effective oscillation source location method based on a total least squares-estimation of signal parameters via rotational invariance techniques (TLS-ESPRIT) and damping torque analysis (DTA) for the power systems. In this method, the dominant oscillation mode of each generator is extracted from measured signals (e.g. rotor speed, rotor angle, and active power) at its side by means of TLS-ESPRIT, and then corresponding damping torque coefficient can be obtained through the least square fitting method to determine whether the generator is the oscillation source of this oscillation mode. Finally, case studies are carried out on the 4-machine 2-area system and 10-machine New England test system, respectively. Simulation results indicate that the proposed locating method can accurately locate the power system oscillation source, by which low-frequency oscillation can be effectively restrained using local control measures.