Transmission networks of modern power systems are becoming increasingly stressed because of growing demand and restrictions on building new lines. One of the consequences of such a stressed system is the threat of losing stability following a disturbance. So for the improvement of power transfer capability with in the safe stability limit it is necessary to enhancing the small signal stability of the power system. The objective of this thesis is to investigate the POWER SYSTEM STABILITY ENHANCEMENT via Automatic Voltage Controller (AVR), Power System Stabilizer (PSS) and Flexible AC Transmission (FACTS) based controller such as Static Synchronous Compensator (STATCOM). This study includes the specific coordination between PSS and STATCOM controller. With use of linearized model of each element the specific parameter will be decided. By the proper coordination of AVR, PSS and STATCOM with specific parameter the stability of the power system will enhance. Above mention coordination maintained the rotor angle and speed in synchronism. Single Machine Infinite Bus system proposed for the study. Implementation is carried out on the MATLAB / Simulink