This paper investigates the impact of extreme gust wind as a case of wind speed variation on a wind farm interconnected electrical grid. The impact of extreme gust wind speed variation on active and reactive power of the wind farms is studied for variable speed wind farm equipped with Doubly Fed Induction Generators (DFIGs). A simulation model of the under implementation 120 MW wind farm at Gulf El-Zayt region, Red Sea, Egypt, is simulated as a case study. A detailed model of extreme gust wind speed variation is implemented and simulated, using MATLAB/Simulink toolbox, based on International Electrotechnical Commission IEC 61400-1 and climate characteristic of Gulf El-Zayt site. The simulation results show the influence of different extreme gust wind speed variations on the fluctuation of active power and reactive power at the Point of Common Coupling (PCC) of the studied wind farm.