The VSC-based high voltage DC transmission (VSC-HVDC) has the capability of fast and flexible active and reactive power control. VSC-HVDC with additional damping controller can effectively suppress low-frequency oscillation of AC system. This paper discusses how the magnitude limiter in the damping controller influences control effect, then proposes a new method of using fault recovery signal for damping controller. The fault recovery signal is a kind of exponentially decay power. By adding it to output of the damping controller as the DC power reference can reduce the magnitude of DC power at early stage of DC power modulation. Within range of allowed DC voltage ripple, the DC power modulation tends to be in an ideal free damping state, damping more rapidly in comparison with additional damping controller without fault recovery signal. Thus the influence of limiter is significantly reduced. This paper also gives the relationship curve of DC power ripple and DC voltage ripple. Simulation results validate the effectiveness of the proposed damping controller.