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In this paper an advanced controller is designed. The purpose of the above nonlinear controller is to damp out inter area oscillations of a multi machine power system using Unified Power Flow Controller (UPFC). Generators in a power system would experience continuous load change in its daily operation, and drastic changes can occur when there is fault in the power system. Since nonlinear controllers are independent of operating point, this controller can give better results than linear controller. The proposed controller is implemented on a two area power system. The results are compared against a traditional PI controller at different loading conditions.