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The main objective of this paper is to investigate the enhancement of power system stability via Thyristor Controlled Series Compensation (TCSC), in a two area interconnected power systems. The design problem of the proposed controllers is formulated as an optimization problem. Using the developed linearized power system model, the particle swarm optimization (PSO) algorithm is employed to search for optimal controllers' parameters settings that maximize the minimum damping ratio of all system eigenvalues. The proposed controller is evaluated on a multimachine power system. The nonlinear simulation results and eigenvalue analysis show the effectiveness of the proposed controller in damping power system oscillations.