The major problem in power system operation is related to small signal instability caused by insufficient damping in the system. The most effective way of countering this instability is to use auxiliary controllers called power system stabilizers, to produce additional damping during low frequency oscillations in the system. Heffron-Phillip’s Model of a synchronous machine is commonly used in small signal stability analysis. Different techniques for designing of power system stabilizer is proposed for Modified Heffron-Phillip’s model, the parameters of the power system stabilizer has been tuned by the three ways , linear quadratic power system stabilizer, genetic algorithm power system stabilizer and proposed power system stabilizer. The efficiency of the proposed design technique and the performance of the stabilizer has been evaluated over a range of operating and system conditions and the performance of the proposed controller is much better than the linear quadratic power system stabilizer and genetic algorithm based power system stabilizer.