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The paper presents a new method for design of power system stabilizer based on fuzzy logic and output feedback sliding mode controller. The control objective is to enhance the stability and to improve the dynamic response of the single machine infinite bus(SMIB) system operating in different conditions. First, the control rules are constructed according to the concepts of output feedback sliding mode control, and the fuzzy sets, whose membership functions are defined. Then, hitting control, which guarantees the stability of control system, is developed. Finally, the hitting control is smoothed via the constructed heuristic control rules. We apply this output feedback fuzzy sliding mode controller to design power system stabilizer for demonstrating the availability of the proposed approach [J-Y Chen, 2001].