Inter-Turn Short Circuit (ITSC) fault in stator winding is a common fault in Doubly-Fed Induction Generator (DFIG)-based Wind Turbines (WTs). Improper measures in the ITSC fault affect the safety of the faulty WT and the power output of the Wind Farm (WF). This paper combines derating WTs and the power optimization of the WF to diminish the fault effect. At the turbine level, switching the derating strategy and the ITSC Fault Ride-Through (FRT) strategy is adopted to ensure that WTs safely operate under fault. At the farm level, the Particle Swarm Optimization (PSO)-based active power dispatch strategy is used to address proper power references in all of the WTs. The simulation results demonstrate the effectiveness of the proposed method. Switching the derating strategy can increase the power limit of the faulty WT, and the ITSC FRT strategy can ensure that the WT operates without excessive faulty current. The PSO-based power optimization can improve the power of the WF to compensate for the power loss caused by the faulty WT. With the proposed method, the competitiveness and the operational capacity of offshore WFs can be upgraded.