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Communication failures and transmission delays are two major issues associated with Wide-Area Damping Controllers (WADCs). While transmission delays have been extensively studied and various solutions have been proposed, little research has been done on communication failures and most of the proposed methods are based on preventive controls. However, in today’s liberalized electricity markets, preventive controls are no longer acceptable and the trend is to use emergency controls instead. This paper proposes a novel emergency control scheme to counteract the loss of remote signals related to the input and to the output of the WADC (i.e. sensor and actuator failures). The proposed scheme is based on a simple criterion, which overcomes the complexity of the previous methods. Modal analysis and time domain simulations are performed to verify the performance of the proposed method. The simulation results show that the proposed method performs well in handling communication failures and can maintain good damping performance. This research work is particularly important in view of the trend towards the wide-scale adoption of wide-area measurement technologies, while the vulnerability to cyber-attacks is increasing.