In emerging electric power systems, increased transactions often lead to the situations where the system no longer remains in secure operating region. The flexible Ac transmission system (FACTS) controllers can play an important role in the power system security enhancement. However, due to high capital investment, it is necessary to locate these controllers optimally in the power system. FACTS devices can regulate the active and reactive power control as well as adaptive to voltage-magnitude control simultaneously because of their flexibility and fast control characteristics. Placement of these devices in suitable location can lead to control in line flow and maintain bus voltages in desired level and so improve voltage stability margins.This paper proposes a systematic method by which optimal location of MUTI TYPE FACTS DEVICES to be installed. FACTS DEVICES model is incorporated into a NewtonRaphson algorithm to perform load flow analysis. Optimizing its location becomes a concern when coming to the practical implementation stage. Proposed algorithm is tested on IEEE 5 bus power system for optimal allocation of multi-type FACTS devices and results are presented.