Power system stabilisers (PSSs) are added to excitation systems of a synchronous generator as a supplementary controller to improve the dynamic stability of a power system by damping the electromechanical oscillations occured in the system. Over the last four decades various approaches, such as phase lead-lag, Proportional-Integral-Derivative (PID), linear quadratic regulator, H 1, sliding mode controller (SMC) and etc., have been reported in the literature for the PSS design. The SMC has some advantages, such as parameter insensitivity and realisation simplicity, over the other approaches. To the best of our knowledge, observer-based model following discrete SMC (OMFDSMC) method has not been used in the PSS design. Therefore, this paper is the first study that used OMFDSMC method in the PSS design in the literature. Simulation results show the effectiveness and robustness of the proposed OMFDSMC-based PSS under normal load operations, operating point and parameters variation conditions. S 1 and S 2 in (13) should be chosen in such a way that (15) is stable. Note from (15) that, the problem of finding the design matrix S 12 is a classical state feedback problem. Therefore, again, one can design S 12 Figure 5. Dynamic responses of Dw for 20% change in K A and T d0 following a 5% change in DT m (a) CPSS, (b) LQR, (c) OMFDSMC, -nominal parameters, -20% changed parameters.30. Hui S, Zak SH. On discrete-time variable structure sliding mode control. Systems and Control Letters 1999; 38:283-288. 31. Ogata K. Discrete-Time Control Systems, Prentice Hall: New Jersey, USA, 1995; 377-633. 32. IEEE Std. 421.5 Recommended practice for excitation system models for power system stability studies, 2005. 33. Lee SS, Park JK. Design of reduced-order observer-based variable structure power system stabiliser for unmeasurable state variables.