The work entailed in this paper is to develop a model for the optimal location of shunt Flexible Alternating Current Transmission System (FACTS) along a transmission line so as to enhance controllability and increase power transfer capability of the transmission network. Mathematical models for maximum power transfer and transmission angles for transmission line were developed. The investigation was done for both lossless and actual transmission lines. MATLAB software was used for the simulation of the models. Aloaji-Itu transmission 132 KV transmission line in Southeastern Nigeria was used as a case study. Performance analysis was conducted on the various maximum power and transmission angles data for different degree of series compensation and FACTS locations along the transmission lines to determine the optimal location of the FACTS device for both lossless and actual transmission lines. The results obtained showed that the optimal location of the shunt FACTS device is not fixed, but changes with the change in degree of series compensation. Both the power transfer capability and stability of the system can be improved much more if the shunt FACTS device is placed at the new optimal location instead of the mid-point of the line.