In power system, power quality is one of the important aspects as power quality problems are occurred due to occurrence of voltage swell, voltage sag, transient, harmonics distortion, etc. in the transmission line. Out of these, voltage swell has less predominantly occurred and creates severe impact on transmission line and sensitive devices connected to it. By IEEE 1159 Voltage swell is an increase in RMS voltage level from 110% to 180% of nominal voltage at power frequency for the duration of 1/2 cycle to 1 minute[1]. The voltage swell is occurred due to de-energising of large heavy loads, switching off load, lightening strokes, etc. The occurrence of voltage swell is very low but when it is occurred it creates severe impact on transmission line and connected devices. Hence it is necessary to mitigate or compensate the voltage swell to improve power quality of transmission line. The compensation of voltage swell is done by using FACTS devices (STATCOM). In this paper, the analysis of 132kv transmission line with including STATCOM and without including STATCOM is simulated in MATLAB/SIMULINK software, which shows the voltage swell is compensated and voltage profile has been improved.