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This paper describes the load frequency control (LFC) of two area interconnected hydro-thermal system using conventional proportional - integral (PI) controller and fuzzy logic controller (FLC). The thermal system is incorporated with governor dead band, generation rate constraint and boiler dynamics. The hydro system is incorporated with generation rate constraint. The conventional PI controller does not yield adequate control performance with the consideration of non-linearities and boiler dynamics. To overcome this drawback FLC has been employed in the system. The aim of FLC is to restore the frequency and tie line power in very smooth way to its nominal value in the shortest possible time. Time domain simulations are used to study the performance of the power system. System performance is examined considering 1% step load perturbation in either area of the system.