This paper will discuss how static Var compensator successfully been applied to control transmission system. The voltage level of the system changes when there is a change in load and the drop in load voltage lead to demand for the reactive power. Static Var Compensator is basically a shunt connected Static Var Generator whose output is controlled by adjust the value of capacitive or inductive current. One of the reasons for installing the Static Var Compensator to improve the voltage profile and increases the system lodability. When system voltage is low it generates the reactive power. When the system voltage is high it absorbs the reactive power. FACTS are technologies that increase flexibility of transmission system, control of power flow and increases transmission capacity of the system. In this paper FACT controller such as Static Var Compensator are used to maintain the voltage within limit. Simulation will be provided by using MATLAB.