Low Frequency Oscillations (LFO) in power system occur usually because of lack of damping torque to overcome disturbances in power system such as changes in mechanical power. These LFO greatly affect the transmission line transfer capability and power system stability. PSS and FACTS devices can help the damping of power system oscillations.Traditionally, Power System Stabilizers (PSS) are being used to damp these oscillations. In this paper, we propose a systematic approach to design the damping controller for UPFC model in Single Machine Infinite Bus (SMIB) system.Unified Power Flow Controller (UPFC) is a well-known FACTS device that can control power flow in transmission lines. It can also replace PSS to damp low frequency oscillations effectively through direct control of voltage and power. In this paper a linearised Heffron-Philips model of a (Single Machine—Infinite Bus) power system with a unified power flow controller is developed. A proposed fuzzy logic based UPFC controller adjusts four UPFC inputs by appropriately processing of the input error signal, and provides an efficient damping when compared to conventional damping controller and PID controller. The simulations are performed in MATLAB/SIMULINK environment with necessary command lines. The results of the simulation show that the UPFC with fuzzy-based controllers is more effective in damping LFO compared to UPFC with damper controllers and PID controllers.