Together with quality power supply criteria, Composite Power System (CPS) reliability is also one of the important aspects of deciding the security of the CPS for a given load demand. In the current paper, the reliability of CPS is evaluated. The Newton Raphson (NR) approach is implemented in Power System Simulation for Engineering (PSSE) software to take into account, the load flows, then the power available to the load points, to evaluate the reliability of CPS. Newton Raphson NR Method was implemented by considering different contingencies of the CPS. Power available to the load points obtained by the NR method is critical in identifying the successful operating state of the CPS. Expected Load Curtailment (ELC), Number of Load Curtailment (NLC), Expected Energy Not Supplied (EENS), and Severity Index (SI) are the crucial dependability indices that are assessed. The main objective of the Reliability evaluation of the CPS is to investigate the scope for the improvement of reliability and explore the possible schemes to improve CPS reliability. The Unified Power Flow Controller (UPFC) one of the Flexible AC Transmission Systems is incorporated into the CPS to analyze the improvement in the reliability of the system. Further, the effect of UPFC on the power-carrying capacity of the lines under contingency conditions, resulting in the failure mode of CPS operation is examined. Improvement in the reliability indices of the system is observed due to UPFC incorporation.