The dynamic analysis of stability in industrial power system is an important subject. In this paper, the effect of voltage dips for short duration (short-circuit) in the utility system on generators, synchronous motors of the industrial plant and the measures to be adopted to reduce the undesired effects of voltage dips re investigated. In the case of utility three-phase short-circuits of longer duration, both the generators and synchronous motors in the plant may become unstable. In order to avoid instability through fault clearing in the second zone time a decoupling device is necessary. The instability of voltage can be avoided with a well suited setting time of disconnecting device and load trip.