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In this paper, the Particle Swarm Optimization (PSO) technique is used to develop a controller for damping power system oscillations. The speed deviation ω ∆ and its rate of change • ∆ω are selected as input signals to the proposed controller. The objective is to get optimal gains values of the controller within pre-specified limits to improve the system dynamics. In order to ensure the reliability of the PSO based controller, a comparison has been made between the effect of the developed controller and that of an ℋ ∞ controller on the dynamic performance of a single machine connected to infinite bus. The simulation results show that the PSO-based controller offer effective damping to system oscillations in a wide range of operating conditions and system parameters.