The high reactive power demand by the induction motor load during fault condition due to reduced bus voltages may cause a generator to behave like a voltage source behind the synchronous reactance and its terminal voltage reduces leading to the possibility of a voltage collapse scenario. For reliability of these systems, and in an attempt to reduce system oscillations, Power System Stabilizers (PSS) have used to add damping by controlling the excitation system. Studies on a SMIB and those using static loads have shown that a well-tuned PSS using a Fuzzy Logic Controller (FLPSS) can effectively improve power system dynamic stability.