The use of Superconducting Magnetic Energy Storage (SMES) units to improve the dynamic stability of a multi-machine power system is investigated. The SMES unit is equipped with two independent controllers which ensures the effective management of its active and reactive power capabilities. The parameters of these controllers are determined once off-line. The simulation results show that the SMES unit is able to restore system stability even for disturbances of large magnitude. The control algorithms for SMES unit are simple and implementation will require very little hardware.