The grid-forming (GFM) converters can actively support grid voltage/frequency by fast power adjustment. Since the GFM converter is connected to the utility grid through long lines, there is a risk of voltage overrun at the point of common coupling when disturbances occur. The existing GFM control is unable to effectively regulate voltage due to the converter’s limited capacity while simultaneously regulating voltage and frequency. On this basis, this manuscript proposes a coordinated frequency and voltage regulation control strategy of GFM converter considering its capacity limits. If the converter output power is less than its capacity limits, the proposed control will minimize the voltage and frequency offsets for better transient support. Otherwise, when the converter output power reaches its limits, the system voltage is regulated preferentially to alleviate the voltage drop, which is more urgent than frequency for point of common coupling in utility grid. Finally, the effectiveness and advancement of the proposed strategy are verified. The simulation results show that compared with the existing typical control strategies, the proposed strategy can significantly reduce the voltage drop while ensuring the frequency stays within the limit.