This paper presents a method to improve power system stability using IPFC based damping online learning recurrent neural network controllers for damping oscillations in a power system. Parameters of equipped controllers for enhancing dynamical stability at the IPFC are tuned using mathematical methods. Therefore these control parameters are often fixed and are set for particular system configurations or operating points. Multilayer recurrent neural network, which can be tuned for changing system conditions, is used in this paper for effectively damp the oscillations. Training is based on back propagation with adaptive training parameters. This controller is tested to variations in system loading and fault in the power system and its performance is compared with performance of a controller that the phase compensation method is used to set its parameters. Selection of effectiveness damping control signal for the design of robust IPFC damping controller carried out through singular value decomposition (SVD) method. Simulation studies show the superior robustness and stabilizing effect of the proposed controller in comparison with phase compensation method. (C) 2011 Elsevier Ltd. All rights reserved.