The main objectives of this paper are to improve transient stability by fuzzy logic power system stabilizer (FLPSS) and also to control voltage at the static VAR compensator (SVC) location bus. Phasor model of SVC is described and used in this paper. Necessity of using SVC to control the voltage at the middle line has been demonstrated. The paper also compares the damping effectiveness of the FLPSS and conventional power system stabilizer (CPSS). In all simulations two types of faults, 3LG and 1LG are considered. Simulation results have shown that the FLPSS and SVC can improve transient stability and control voltage at the SVC bus location.