In this paper a classical lead-lag power system stabilizer is used for demonstration. The stabilizer parameters are selected in such a manner to damp the rotor oscillations. The problem of selecting the stabilizer parameters is converted to a simple optimization problem with an eigen value based objective function and it is proposed to employ simulated annealing and particle swarm optimization for solving the optimization problem. The objective function allows the selection of the stabilizer parameters to optimally place the closed-loop eigen values in the left hand side of the complex s-plane. The single machine connected to infinite bus system and 10-machine 39-bus system are considered for this study. The effectiveness of the stabilizer tuned using the best technique, in enhancing the stability of power system. Stability is confirmed through eigen value analysis and simulation results and suitable heuristic technique will be selected for the best performance of the system