A method for adjusting the power output of a wind turbine (10) based on component operating temperatures is disclosed. The method may generally include receiving a signal associated with an operating temperature of the wind turbine (402), determining a desired power output range of the wind turbine at the operating temperature (404), comparing a power output of the wind turbine to the desired power output range (406) and adjusting the power output when the power output is outside the desired power output range (408).