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In this paper, an H∞ controller is designed to achieve simultaneous control of the damping of power system oscillations and terminal voltage of multi-machine power system. The proposed controller is a decentralized, and it depends only on the locally information available. It uses the normalized coprime factorization approach to achieve the proposed design criteria, i.e., to improve terminal voltage control performance and increase the damping of the power system oscillations. Use of normalized coprime factorization approach makes simplify in the selection of weighting function in the H∞ controller and can design an output feedback controller that takes into account of realities and constraints of the electrical power systems. We verify the proposed method, through computer simulations on a multi-machine power system.