This paper presents an advanced control approach for a synchronous generating unit based on the combination of an adaptive controller and a static var compensator (SVC). The considered electrical power system consists of a turbogenerator connected to an infinite bus via a step-up transformer and a double circuit transmission line. Firstly, a fairly detailed model of the system is built to simulate system performance at various operating points using MATLAB-SIMULINK environment. A performance criterion has been considered and a recursive least square (RLS) algorithm is utilized to determine the parameters of the proposed adaptive controller. This control algorithm is preferred for its simplicity and it is more suitable for online applications. SVC is inserted at the generator terminal for power oscillation damping and stability improvement with fast acting voltage regulation. The system performance with and without the control strategy is evaluated and the results are presented in a comparative form with conventional control systems. The results obtained over a wide range of operating points show that a significant improvement of performance can be achieved via a combination of adaptive and SVC controllers with enhanced damping and voltage recovery. The results presented in the paper are of prime importance to engineers in power systems utilities, forming a guide to improve performance.