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The static synchronous compensator (STATCOM) controller is a versatile FACTS device. They have the capabilities of controlling power flow in transmission line, improving the transient stability, mitigating system oscillations and providing voltage support. In this work, the ability of STATCOM in damping power systems oscillations is investigated. The optimal pole shifting (OPS) technique using Genetic Algorithm will be applied in designing STATCOM damping controller. The dynamic interaction of STATCOM controller is analyzed.