ABSTRACT: Reactive power compensation is an important issue in the control of electric power system. Reactive power from the source increases the transmission losses and reduces the power transmission capability of the transmission lines. Moreover, reactive power should not be transmitted through the transmission line to a longer distance. Hence Flexible AC Transmission Systems (FACTS) devices such as static compensator (STATCOM), unified power flow controller (UPFC) and static volt– ampere compensator (SVC) are used to alleviate these problems. In this paper, Hysteresis current control based STATCOM is developed with PI Controller and Implemented in the Hardware. The Controller designed is being tested on a 15 V, ±200VAR STATCOM in real time environment via state of-the-art of PI control system. Keywords: FACTS, STATCOM, PI controller.