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Increasing contingency issues result in inevitable bus voltage violations and force the system to operate around its limit. This situation creates strains that are faced by the security of the Ethiopian Electric Power (EEP) 400 kV system. In this paper, the static security assessment (SSA) of the system under the base and N-1 contingency scenarios was examined by using Newton-Raphson (NR) method. The Bus and line loading-based composite severity indices (CSI) were utilized to determine the state of the system and to get an optimal location for interline power flow controller (IPFC) placement. In this research, the optimal sizing of IPFC was done by using Grey Wolf Optimization (GWO) algorithm. From N-1 contingency analysis, Gelan to Sebeta and Gelan to Holeta branches were found as optimal places for IPFC placement. The IPFC optimal parameters were the series voltage and angle injection found as Vse1 = 0.1101pu, Vse2=0.1096pu, δse1=-0.1848rad, and δse2=2.7682rad with the optimal size of 50 MVA for each IPFC. The average bus voltage severity index (BVSI) without and with IPFC cases was found as 217.243% and 2.641% respectively. The average line severity index (LSI) without and with IPFC cases were found as 39.448% and 15.283% respectively. Moreover, the total line loss under severe N-1 contingency scenarios without and with IPFC integration was 437.783 MW and 63.136 MW respectively. From analysis, it was observed and concluded that the static security of the EEP 400 kV system under N-1 contingency conditions is effectively improved by the integration of IPFC.