This article reveals the power and frequency oscillation mechanism of the islanded cascaded-type virtual synchronous generators (VSGs), and proposes a decentralized mutual damping suppression method. In the proposed scheme, the mutual damping term is constructed via the decentralized manner with transmission line current. It contributes to increasing damping and accelerating the frequency convergence of cascaded-type VSGs in the dynamic process. As a result, the power and frequency oscillations are restrained, and the system dynamic performance is improved. Further, the system stability based on the Lyapunov energy function method is proved. Finally, the effectiveness of the proposed decentralized mutual damping control is verified by simulations and experimental results.