In this paper, we examine the problem of designing power system stabilizer (PSS). A new technique is developed using particle swarm optimization (PSO) combined with linear matrix inequality (LMI). The main feature of PSO, not sticking into a local minimum, is used to eliminate the conservativeness of designing a static output feedback (SOF) stabilizer within an iterative solution of LMIs. The technique is further extended to guarantee robustness against uncertainties wherein power systems operation is changing continuously due to load changes. Numerical simulation ahs illustrated the utility of the developed technique.