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Static VAR Compensator (SVC) has been used as a supplementary controller to improve transient stability and power oscillation damping of the system. A fuzzy logic controller combined with PI controller for SVC is discussed in this paper. The discussed controller is been tested on a test system consists of a 2-machines 3-bus system. The performance of the fuzzy-based SVC controller to damp oscillation of several parameters after being subjected to disturbance is observed. The parameters observed include difference of rotor angle, speed of machines, terminal voltage of buses and transmission line active power. The results show that the fuzzy-based SVC controller gives better performance as compared to system implemented with the conventional SVC.