The paper presents a case for correlating transient response with transient-stability limit of power systems. An elementary power system provided with fast acting voltage regulators using various feedback signals is analysed in detail. The effect of varying regulator gains on transient response is investigated with the help of gain-locus diagrams on a gain plane. The Runge-Kutta method with fourth-order approximation is used to determine the transient-stability limit of the same system for various gains. The gains which give good transient response are compared with those which give high stability limit. Efforts have thus been made to see whether it is possible to correlate good transient response with high transient-stability limit.