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Fast acting static synchronous compensator (STATCOM), a representative of FACTS family, is a promising technology being extensively used as the state-of-the-art dynamic shunt compensator for reactive power control in transmission and distribution system. Over the last couple of decades, researchers and engineers have made path-breaking research on this technology and by virtue of which, many STATCOM controllers based on the self-commutating solid-state voltage-source converter (VSC) have been developed and commercially put in operation to control system dynamics under stressed conditions. Because of its many attributes, STATCOM has emerged as a qualitatively superior controller relative to the line commutating static VAR compensator (SVC). This controller is called with different terminologies as STATic COMpensator advanced static VAR compensator, advanced static VAR generator or static VAR generator, STATic CONdenser, synchronous solid-state VAR compensator, VSC-based SVC or self-commutated SVC or static synchronous compensator (SSC or S2C). The development of STATCOM controller employing various solid-state converter topologies, magnetics configurations, control algorithms, switching techniques and so on, has been well reported in literature with its versatile applications in power system. A review on the state-of-the-art STATCOM technology and further research potential are presented classifying more than 300 research publications.