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This paper investigates the application of TCSC hybrid controller for improving damping inter-area modes of oscillations. The proposed controller comprised fuzzy logic proportional and derivative controller with the conventional Proportional and integral controller (FUZZY PD+PI). The FUZZY PD terms improve the stability of the system, reduce the overshoot, and increase the transient response of the system. The conventional integral (I) term is responsible for eliminating a steady-state error while the proportional term will have the effect of reducing the rise time and will also reduce a steady-state error. The proposed control scheme optimize the FPID control parameters, KP, KI and K to obtain the best control effect by minimizing the integral time square error online. The performance of the proposed hybrid control in increasing the damping of local and inter-area modes of oscillation is demonstrated in a practical reduce system of south Malaysian power network called TNB 25-bus system.