Power system small signal stability region considering time delay is tentatively investigated in this paper. Stability analysis of the differential-algebraic equation is first briefly reviewed. Then a two-layer optimal-based algorithm is given to trace the power system small signal stability region with time delay considered. Two simple power systems are analyzed by the method proposed and it is found that time delay has significant influence to the boundary of the small signal stability region. So it should be carefully considered in small signal stability studies.