Nowadays Distributed Power Systems (DPSs) are used in different applications such as aerospace industry, submarines, ships and hybrid electric vehicles. However, interaction between the converters in these technologies, also create new challenges like instability due to the “Constant Power Loads” (CPL). In this paper, the small-signal analysis results of a DC hybrid power system are presented. This system is constituted of two load-converters with tight regulation, that exhibit CPL behavior and a battery with a DC-DC converter that are connected to a DC network. A distributed linear stabilization approach is considered to increase the reliability of the system; hence, an oscillation compensation technique is proposed to improve the stability margin of the system. Simulation and experimentation confirm the validity of the proposed approach.