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In this paper a bacteria foraging intelligent optimization based optimal fuzzy scheme has been developed to design intelligent adaptive controllers for improving the dynamic and transient stability performance of multimachine power system. This concept is applied to Power System Stabilizer (PSS) connected to a nine bus three machine power system. The rules of the neuro-fuzzy scheme are derived from the speed error and their derivatives. The parameters of the Fuzzy Logic are to be optimized for better control performance. The optimization of the fuzzy logic parameters are performed through bacteria foraging algorithm. The performance of the proposed controller is analysed in multimachine power systems subjected to various dynamic and transient disturbances. The proposed bacteria foraging intelligent-neuro-fuzzy control scheme exhibits a superior damping performance in comparison to the existing controllers. The advantage of Neuro-Fuzzy Logic and bacteria foraging optimization shows that the proposed technique is attractive for real-time implementation.