This paper resents an algorithm for the optimal parameter selection of a power system stabilizer in a single machine-infinite bus system through the external equivalent transmission line. This method is one of the classical techniques by changing the PSS gain to allocate properly pole-zero positions. All the PSS parameters are obtained by solving a set of algebraic equations for the system constants depend on a variety of machine loadings and system external impedances, the natural oscillation modes, and the damping characteristics. And this algorithm was written in a simple software program using MATLAB.