The modeling of the real time system with Static VAR Compensator (SVC) using ETAP software is presented in this paper. The system is analyzed under severe disturbance to study the transient behavior by simulating three phase to ground fault at particular bus. To enhance the transient stability of the system, SVC is inserted and tested to show the effect of the same on the transient stability under severe disturbance. The potential application of SVC on the improvement of voltage profile of the various buses and reduction in rotor angle oscillation of the generator is evaluated from the implementation results.