Wind turbines with direct-driven permanent magnet synchronous generators (PMSGs) are widely used in wind power generation. According to the dynamic characteristics of PMSGs, an impact analysis of PMSG-based wind power penetration on the transient stability of multi-machine power systems is carried out in this paper based on the theory of extended equal area criterion (EEAC). Considering the most severe PMSG integration situation, the changes in the system’s equivalent power-angle relationships after integrating PMSGs are studied in detail. The system’s equivalent mechanical input power and the fault period electrical output power curves are found to be mainly affected. The analysis demonstrates that the integration of PMSGs can cause either detrimental or beneficial effects on the system transient stability. It is determined by several factors, including the selection of the synchronous generators used to balance wind power, the reactive power control mode of PMSGs and the wind power penetration level. Two different simulation systems are also adopted to verify the analysis results.