This paper presented to design the power system stabilizer(PSS) for a turbo-generator system using LQG/LTR control synthesis for improving small-signal stability. Application study of LGG/LTR control synthesis is more appropriate in this system since a turbo-generator system is usually operated under circumstance of unmeasurable uncertainties and external disturbance. The LQG/LTR control theory was briefly reviewed for good understanding and the reasonable design approach. The design results are simulated for a case study and to check the system performance in comparison with currently operating lead-lag filtered PSS performance.