Power demand in last two decades has increased substantially increasing the complexity in power system network. Therefore to maintain the transient stability of captive power plant (CPP) during any grid fault or disturbance presents a new challenge to researchers. In case of grid fault, captive power plant immediately isolates its captive generator sets from grid to ensure safety. In this paper, an attempt has been made to improve transient stability of captive generator sets during grid fault using FACTS (Flexible AC Transmission System) controller. The performance of FACTS controllers likes Static Var Compensator (SVC) is observed during grid fault condition. The simulation analysis was performed using MATLAB/Simulink software. © Springer Nature Singapore Pte Ltd. 2017.