The steady state and dynamic performance of a flexible AC transmission system (FACTS) with midpoint located SVS has been presented with and without series compensation. The maximum capacitor of SVS branch in case of line without series compensation, is split into two locations. Two third of it is at the sending end for the purpose of series compensation and one third remains at SVS branch. This has the advantage of reduced ‘δ’ without upsetting greatly the cost economy of equipment. The degree of series compensation thus obtained is used to evaluate the steady state and dynamic performance of series compensated transmission line. The results are then compared over a wide operating range. The line reactive power auxiliary controller and bus frequency auxiliary controller are employed in the SVS control system to stabilize the unstable system modes and the performance of the two auxiliary controllers is also compared over wide operating conditions. It has been established here that such a series capacitor compensated line can give improved static and dynamic performance at a reduced value of δ. © 1996 Taylor & Francis.