The tuning of PSS parameters for satisfactory power system response over a wide range of operating conditions requires an efficient robust optimization technique. This paper presents a novel concept of integrating the Taguchi robust design principle with particle swarm optimization (PSO) for the PSS design. The objective is to build an intrinsic robustness in the design of PSS over a wide range of power system operating conditions. The proposed approach employs signal to noise ratio and orthogonal array concepts of Taguchi design to determine the robust optimal setting of PSS parameters using PSO. The robustness of the PSS designed is tested through No-Way analysis of variance. Further, the effectiveness of the robust PSS is illustrated through time-domain simulations as it is applied to a single machine infinite bus system under wide range of loading conditions.