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Abstract: This paper presents a fuzzy based supplementary controller for STATCOM for improving the angular stability of a multi-area power system. The controller provides a supplementary voltage signal in addition to the usual line bus controller for damping low-frequency interarea oscillation present in the system. The Mamdani based fuzzy controller forms the core of the supplementary controller. The selection of the wide area signal as stabilizing input is made according to participation factor based on the modal analysis. The proposed controller effectively damps interarea oscillations over wide operating range thus improving the angular stability of the system. The effectiveness of the proposed controller is tested on two area multimachine system.