This paper presents the dynamic-stability analyzed results of both dynamic simulations and steady-state performance of a wave-energy power generation system containing a grid-connected induction generator (IG) driven by a Wells turbine. The stator windings of the IG are connected directly to a power grid through a step-up transformer and a transmission line. A d-q axis equivalent-circuit model is employed to establish the IG, the transmission line, and the grid to derive the complete dynamic equations of the studied system under three-phase balanced loading conditions. A frequency-domain approach based on eigenvalue analysis and a time-domain scheme based on nonlinear-model simulations are both carried out to systematically determine the dynamic stability of the studied system under various operating conditions. It can be concluded from the simulation results that the studied wave-energy power generation system subject to different disturbance conditions can maintain stable operation.