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In this paper, we design the optimal output feedback controllers for unified power flow controller (UPFC) in order to enhance the damping of power system low frequency oscillations. The selection of the output feedback gains for the UPFC controllers is converted to an optimization problem with the time domain-based objective function which is solved by a quantum-behaved particle swarm optimization technique (QPSO). The effectiveness of the proposed controller is demonstrated through nonlinear time-domain simulation and some performance indices studies of over a wide range of loading conditions. The results analysis reveals that the designed QPSO based UPFC controller has an excellent capability in damping power system low frequency oscillations in comparison with designed Classical PSO (CPSO) based UPFC controller and enhance greatly the dynamic stability of the power systems.