The objective of this thesis is to investigate the transient response and optimal economic dispatch of an isolated power system with wind generators. Different types of wind turbines and the classification of Stability are introduced. Then, the process of Transient stability analysis and the concept of Genetic Algorithms are given for explanation. In this thesis, the practical power system of Kinmen is selected for case study. The disturbances introduced by gusting wind and N-1 system contingency are considered in the transient stability analysis. Furthermore, in order to obtain both accuracy and feasibility of the Optimal power dispatch by using Real-parameter Genetic Algorithms, the simulation results should be tested for the restrictions and requirements of the actual operation.