This paper solves the problem of power system stabilization by using the advanced static synchronous shunt compensator (STATCOM) to increase the damping of electromechanical oscillations of the power system and regulates the system voltage by absorbing or generating reactive power to the system. Also, a multi-band power system stabilizer (MB-PSS) is developed in this paper to get a moderate phase advance at all frequencies of interest in order to compensate for the inherent lag between the field excitation and the electrical torque induced to ensure robust oscillation damping. A combined control of (STATCOM) with (MBPSS) is proposed also in this paper to give more increase of the oscillation damping that improves power system stability. All these controllers are supplied to the multi-machine two-area power system.