The power system has to maintain its synchronism from transient disturbances and oscillations. To achieve this, the static var compensator(SVC), which is a flexible AC transmission system(FACTS), is applied to the power system. SVC using an advanced control algorithm improves the stability of power system. This paper is a study on design of SVC to improve harmonics and power factor of power plant. The proposed SVC analyzes harmonics, voltage drop and reactive power in real time. On the basis of the analysis of the data, the SVC using a switching control algorithm decreases harmonic signals and increases the power factor. The experimental results show that the proposed SVC enhances the stability of power system.