This Paper presents a new hybrid PSO technique for optimal location of FACTS devices considering optimal power flow (OPF).The problem is decompressed into the optimal setting of FACTS parameters sub problem that is searched by the hybrid PSO approach and the OPF with fixed FACTS parameters sub problem that is solved by the Modified Interior Point programming method. Two types of FACTS devices are used TCSC (Thyristor Controlled Series Capacitor) and SVC (State Var Compensator). The optimizations are performed on the parameters namely the location of FACTS devices, their settings and their types. Simulations are performed on IEEE 30 bus systems indicates that the proposed hybrid PSO, able to identify the optimal number & location of FACTS devices in an assigned power system network for minimizing the total generation cost and transmission losses, maximizing systems capabilities, and maximization of the social benefit from the effectiveness of the proposed method. © EuroJournals Publishing, Inc. 2011.