—Ever growing changes in power systems have made modeling and control problems challenging and more complex. On the other hand, significant improvements have been done in wide-area monitoring and control systems. In the present paper a low-order model identification method based on phasor measurement unit data is used. This model properly represents dominant inter-area modes which are concerned in interconnected power systems. Then, a damping controller is designed using robust and adaptive approaches. The controller is selected as power system stabilizer. The proposed method is tested on four-machine two-area system by using phasor dynamic data obtained from simulation environment using MATLAB software, and the results demonstrate it effectiveness.