Grid-connected wind turbines are fluctuating power sources that may produce flicker during continuous operation. This paper presents a simulation model of a MW-level variable speed wind turbine with a full-scale back-to-back power converter and permanent magnet synchronous generator (PMSG) developed in the simulation tool of PSCAD/EMTDC. Flicker emission of this system is investigated. The 3p (three times per revolution) power oscillation due to wind shear and tower shadow effects is the significant part in the flicker emission of variable speed wind turbines with PMSG during continuous operation. A new method of flicker mitigation by controlling the rotational speed is proposed. It smoothes the 3p active power oscillations from wind shear and tower shadow effects of the wind turbine by varying the rotational speed of the PMSG. Simulation results show that damping the 3p active power oscillation by using the flicker mitigation speed controller is an effective means for flicker mitigation of variable speed wind turbines with full-scale back-to-back power converters and PMSG during continuous operation.