In this paper dynamic performance of Automatic Generation Control (AGC) for two area power system with conventional PID and Fuzzy PID controller with different load disturbance and for different systems is presented. AGC plays an important role in multi area power system to maintain system frequency and tie-line powers at their normal values. The performance analysis of AGC for two area power system done in MATLAB/SIMULINK environment. The simulation results show that the Fuzzy-PID controller gives improved dynamic performance of system compared to conventional PID controller.