This paper presents the potential applications of flexible AC transmission system (FACTS) controllers, such as the static VAR compensator (SVC), using the latest technology of power electronic switching devices in the fields of electric power transmission systems with controlling the voltage and power flow, and improving the voltage regulation. The SVC can be used to enhance voltage stability of the system with the possibility of adding additional damping control. With the application of SVC, the voltage stability can be improved under normal condition as well as under disturbances such as faults. A SVC performs such system improvements and benefits by controlling shunt reactive power sources, both capacitive and inductive, with high power electronic switching devices. This work is presented to solve the problems of poor dynamic performance and voltage regulation in an 230KV transmission system using SVC. To evaluate the voltage stability enhancement by SVC, the simulation model is implemented using Matlab/Simulink and performance analysis is done based on simulation results.