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A novel approach to design fixed parameter robust STATCOM controller for a multi-machine power system through loop-shaping procedure is presented. The manual graphical loop-shaping procedure used in designing a robust STATCOM controller can be automated by embedding some optimization procedure in it. In this paper design automation is achieved using Genetic Algorithms (GA). Robust controllers were designed considering the detailed dynamics of the multi-machine power system installed with STATCOM and results were compared with reduced order models. The high order multi-machine models have been simplified for control design through balanced realization technique. Simulation studies have been carried out to test the robustness of the design for a range of operating conditions and various disturbances including three phase faults. The robust design was tested on a four machine test system. The GA based loop- shaping controller was observed to provide very good damping profile for the range of operation considered and for various disturbance conditions.