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In order to utilize a Static Synchronous Series Compensator (SSSC) in the steady state condition, it is to be controlled by several modes. The most important control modes of the SSSC are constant voltage mode, constant impedance mode, and constant power control mode. Besides, this device may be furnished with supplementary controllers, such as damping controls, to enhance the dynamic performance of system. In this paper, the influence of various SSSC control modes on small signal and transient stability of a part of the Iran national grid is investigated. Next, the performance of power oscillation damping (POD) is evaluated for different input signals. The simulation results demonstrate that the utilization of the SSSC in the constant impedance mode improves both the small signal and transient stability better than other control modes.