A robust design of particle swarm optimization (PSO) and Taguchi algorithm-based power system stabilizer (PSS) is presented in this paper. It incorporates a novel concept in which Taguchi and PSO techniques are integrated for stabilization of single machine infinite bus (SMIB). The system tolerates uncertainty and imprecision to a maximum extent. The proposed controller's effectiveness is proved through experiments covering light load condition using MATLAB/Simulink platform. The performance of the system is compared without PSS and with a conventional PSS. The settling time of the optimal PSS is decreased by more than 75% to conventional PSS. The study reveals that the proposed hybrid controller offers enhanced performance with respect to settling time as well as peak overshoot of the system.