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There is increasing demand for transmitting electrical power supply. The increase in power transmission also increases the complexity of electrical supply along with the increasing size. These results in the decrease of the performance of the power systems namely with load flow, power oscillations and voltage quality. Flexible AC transmission systems (FACTS) and High Voltage Direct Current (HVDC) technologies offer some effective schemes to meet these demands. In recent years, FACTS technology has been considered as one of feasible planning alternative in India, to increase power grid delivery capability and remove identified power system network bottlenecks. An attempt is made in this paper to discuss the development and types of FACTS. Simulation of GCSC, using SIMULINK is carried out for comparing voltage regulation and other power quality issues on Transmission lines and IEEE standard 5- bus system.