The widespread use of power electronics in the field of power systems has grown significantly. With the growth of technology, power systems are seeking new and efficient forms of controlling power. This paper deals with the development of Interline Power Flow Controller (IPFC) using fuzzy technology, suitable for an independent controllability over each compensated line in a multiline power system. The analysis developed is based on the d-q orthogonal coordinates, which shows an appropriate and easy method for assessing the IPFC response towards the system’s operation. In the proposed scheme, series and shunt configuration employing an interline power flow controller using fuzzy technology is designed. Most of the compensation is provided by series controller. In case of excess real power demand shunt controller is used. The simulation is done using Matlab software-Simulink.