Voltage stability issues are most common in severely loaded systems. Today's demand for electricity is enormous, putting the vast interconnected network of power systems under stress. This problem may be solved by boosting generation or lowering transmission losses. The voltage magnitude changes over the permitted voltage stability limit when the load rises unexpectedly. However, for the system to function properly, the voltage magnitude must be kept within the limits. As a result, by providing enough reactive power adjustment, voltage stability may be enhanced. The aim of this paper is to maximize the loading capacity of load buses and simultaneously maintain its voltage stability. STATCOM, a FACTS device is the tool selected for achieving these objectives. This paper explains the analysis carried out to understand the impact of STATCOM on load limit and voltage stability. The required simulations were performed using IEEE 14-Bus Test System. The simulation results are subjected to a power flow continuation procedure, during which critical points for voltage stability and maximum load are determined.