The present invention is concerned with an operation of a wind farm with a plurality of wind turbines in view of a dynamic frequency response. According to the invention, dynamic frequency support and power production for all wind turbines in a wind farm are handled concurrently in a single optimization step and taking into account wake effects within the wind farm as well as optional wind forecast information. The dynamic frequency support capability of the entire wind farm is planned in advance according to grid requirements and power system condition changes. While existing methods de-load wind turbines with a static percentage in order to supply additional power when needed, the proposed method incorporates the dynamic frequency support into the optimal operation system of wind farm.