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This paper represents a new model of the Variable Frequency Transformer (VFT) usingMATLAB/SIMULINK. The VFT is used to connect two power systems. The simulations shown in the paper accurately represents the VFT's dynamic characteristics. Based on this model, some further simulations are conducted to study VFT's characteristics under fault conditions. The simulation results show that the VFT prevents the faults from spreading. Also the effect of the change of the frequency on VFT operation is provided.