Identification and control are important problems of power system based on ambient signals. In order to avoid the model error influence of the controller design, a new iterative identification and control method is proposed in this paper. This method can solve model set and controller design of closed-loop power system. First, an uncertain model of power system is established. Then, according to the stability margin of power system, stability theorem is put forward. And then controller design method and the whole algorithm procedure are given. Simulation results show the effective performance of the proposed method based on the four-machine-two-region system.