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A bias‐compensated normalised least mean square (BCNLMS) algorithm with variable step size (denoted as BCVNLMS) is developed in this work to improve the accuracy and convergence speed for the three‐phase power system (TPPS) frequency estimation in circumstance of the noise and harmonic interference. Taking into account the problem of bias estimation caused by the mixed noises in the acquisition signal of the TPPS, the NLMS algorithm with an unbiased criterion (called BCNLMS) was employed to compensate the bias and improve the estimate accuracy. Furthermore, an adaptive variable step scheme is also incorporated into the BCNLMS algorithm to improve the convergence speed and stability during the process of adaptively frequency estimation. The experimental results show that the proposed BCVNLMS algorithm outperforms other well‐known methods for frequency estimation of the TPPS in several scenarios such as severe noise pollution, harmonic interference and frequency mutation. [ABSTRACT FROM AUTHOR]