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This paper deals with designing of Power System Stabilizer (PSS) based on Imperialist Competitive Algorithm (ICA) to improve the stability of power system. The proposed algorithm has been applied on a Single Machine Infinite Bus (SMIB) system where the coefficients of PSS controller has been optimized by ICA. The system with proposed controller has been simulated for the special disturbance in input power of generator and the dynamic responses of generator has been presented. The simulation results shows that the system composed with recommended PSS has outstanding performance in fast damping of oscillations of power system.