This paper presents the stabilization of power system using unified power flow controller (UPFC). Model
predictive control (MPC) technique is then applied to further improve the damping of power system oscillations. UPFC
enhances the power system stability by controlling the transmission line power flow, which is regulated by varying the
magnitude of voltage, its phase angle and impedance of transmission line. MPC not only calculates the optimal control
inputs of UPFC but also predicts system output and helps it to reach the desired value. This results in increased reliability
and continuity of the power network. Simulations are done in MATLAB using two-area test system. The simulation results
show efficient damping of inter-area oscillations in the presence of UPFC combined with MPC which justifies the superior
performance of proposed technique than the existing ones.