An improved circuit and method for increasing the stability of switch-mode power supplies via frequency fold-back is disclosed. For example, a circuit for increasing the stability of a switch-mode power supply using the compensation signal to control the frequency of the oscillator is disclosed, which includes an operational amplifier that functions to scale the compensation signal. Thus, the switching frequency of the power supply involved is decreased as the load is reduced. This novel use of the compensation signal to control the switching frequency of a switch-mode power supply significantly increases the stability of the power supply as compared to prior switch-mode power supplies. Therefore, the switch-mode power supply may be used for those applications where relatively high stability is desired.