The present disclosure is directed to a system and method for stabilizing disconnection of one or more wind turbines in a wind farm connected to a power grid during one or more grid contingency events. The method includes determining, via one or more processors, a phase-locked loop error signal for each of the wind turbines based on sensor signals from the plurality of wind turbines. The method also includes comparing the phase-locked loop error signal of each wind turbine to at least one predetermined threshold for a predetermined time period. If the phase-locked loop error signal for one or more of the wind turbines comprises a positive value that exceeds the predetermined threshold for the predetermined time period, then the method includes generating a trip signal for the one or more of the wind turbines based on the phase-locked loop error signal, the positive value being indicative of system instability, wherein the trip signal is configured to disconnect the one or more wind turbines from the power grid.