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This paper presents the result of the simulation of synchronous static compensator (STATCOM) with fuzzy logic controller on a three phase power system. The behavior of this system in order to compensate the reactive power and harmonics will be described. The fuzzy logic controller does not require a mathematical model of the system and this is a big advantage to use this controller instead of conventional PI controllers. Furthermore, designing and implementation of this controller on the cheap microcontroller is easier than the conventional PI controllers. In this method, the compensation method is based on sensing the line current only an approach different from conventional methods, which require harmonics or reactive volt-ampere requirement of the load. PWM pattern generation is based on carrier less hysteresis based current control to obtain the switching signals. At the end, the result of simulation with MATLB Simulink software has been presented.