In this paper, an attempt has been made to enhance the dynamic behaviour of Automatic Generation Control (AGC) of two areas two units using both Thyristor Controlled Series Compensator (TCSC) placed in the tie-line and Superconducting Magnetic Energy Storage (SMES) units are considered in both areas. For more realistic study, the effects of Governor Dead Band (GDB) and Generation Rate Constraints (GRCs) are taken into account for both areas. However, to conduct the system to better dynamic responses, we have implemented a PI-PD cascade controller. After that, a well-known and powerful optimisation algorithm named Firefly Algorithm (FA) is employed by evaluating the Integral of the Squared Error (ISE). From the obtained results, the implemented methods prove its efficiency from different view of points such as: minimisation of Overshoot and Undershoot Peaks (PO), (PU) and Settling Time (ST).