This paper proposes a new control strategy of a static synchronous series compensator (SSSC) to improve the first swing stability limit and damping of a power system. The first swing stability limit is improved by initially operating the SSSC at its full capacitive rating until the machine speed reaches a reasonable negative value during the first return journey. This is required to maximize the decelerating area and fully utilizing it in counterbalancing the accelerating area. Afterwards, a linear control is applied to improve damping in subsequent swings. The performance of the proposed control is then investigated on a single machine infinite bus system and the 10-machine New England system. Simulation results indicated that the proposed control can significantly improve the first swing stability limit as well as damping of both the systems.