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Abstract: Using parametric model, this paper presents a design procedure for STATCOM proportional-integral (PI) voltage controller for enhancing the voltage profile of the multi-machine system under dynamic disturbances. The proposed design scheme constantly updates the PI controller thus preventing it to integrate or to saturate to a higher value under the condition of uncertainty faced by the controller arising due to change in operating conditions and network configurations. This leads to better stability and enhanced closed loop performance in comparison to the conventional STATCOM linear PI controller and more recently used non-linear multivariable control scheme under different operating conditions. The performance of the proposed enhanced decoupled vector control scheme is evaluated for three phase multi-machine system for different operating conditions and a comparison is drawn against conventional linear PI control scheme and multivariable control scheme.