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Static var compensator (SVC) is used to improve the dynamic stability of the system using supplementary control. In this paper, dynamic behavior of the SMIB power system with SVC has been investigated. The gains of controller were selected based on a pole-placement technique. The IEEE type-ST1 is used for excitation system and the SVC is modeled by a controllable susceptance. Several simulations have been done to show the effect of the proposed approach to damping controller on power system oscillation stability.