Electric power networks are being modified continuously, mainly due to changes
introduced in generation system and load dynamic behaviour. The increasing
stability standards applied by regulatory agencies, as well as the emerging use of wind energy, distributed generation, energy storage systems, etc. poses a challenge to power system designers. Today, many generators are equipped with the PSS. But, due to the complexity of PSS, correct tuning of PSS becomes very critical. The work focuses on the design and development of Controller for combined action of PSS and AVR in a feedback loop power system. The developed controller design technique and analysis presented in this work draws the advantages from various mathematical modelling techniques. Further the tested effectiveness of the controller for variation in Load, Torque, System Parameters and Network Parameters addresses the inherent dynamic characteristics of the Multi Machine System in Real Time Implementation. The objective of designing PSS is to provide additional damping torque without affecting the synchronizing torque at critical oscillation frequencies. The results by the application of optimization algorithm towards the identification of suitable controller for various operating conditions were studied. A set of optimal points for various modelled systems are found and a comparative study on the performance and the results of six different algorithms was outlined for both Single Machine and Multi Machine System.