<p>When a virtual synchronous generator (VSG) operates under grid-connected conditions and is subjected to disturbances, the fixed damping coefficient method exhibits inherent limitations, since it cannot simultaneously accommodate the dynamic and steady-state characteristics of VSG output active power. To overcome this issue, this study proposes two VSG transient damping enhancement strategies based on angular frequency lead–lag compensation (AFLC) and active power lead–lag compensation (APLC). The proposed strategies realize effective decoupling of the dynamic response from steady-state regulation, thereby suppressing overshoot and oscillation without compromising steady-state accuracy. First, the dynamic and steady-state mechanisms of a VSG, together with its corresponding limitations, are analyzed in detail to reveal the root causes of insufficient damping. Subsequently, two transient damping enhancement strategies based on lead–lag compensation are designed, implemented, and comparatively evaluated. Finally, MATLAB/Simulink simulations and hardware-in-the-loop (HIL) testing are conducted to demonstrate the effectiveness of the proposed control strategy under various operating conditions.</p>