Back-to-back STATCOM configuration is an extension of STATCOM in which the reactive power at two-sides and the real power flow through the DC link can be controlled concurrently and independently. This flexible operation brings many advantages to the micro-grids, distributed generation based systems, and deregulated power systems. In this paper, the dynamic control characteristics of the back-to-back STATCOM is investigated by simulating the detailed converter-level model of the converters in PSCAD. Various case studies in a single-machine test system are studied to present that the real power control feature of the BtB-STATCOM, even with a simple controller design, can enhance the transient stability of the machine under different fault scenarios.