The invention provides a method of controlling operation of a wind turbine having a tower. The method includes determining an overall control output including lateral oscillation control for dampening lateral oscillation of the tower, and using the overall control output to control wind turbine operation. The method further includes receiving lateral oscillation sensor data indicative of a level of lateral oscillation of the tower, determining a rated lateral oscillation control output in dependence on the received lateral oscillation data, and receiving an indication of yaw error of the wind turbine. A lateral oscillation control output included in the overall control output is determined to be de-rated from the rated lateral oscillation control output when the indicated yaw error is above a predetermined lower threshold level.