Harmonic domain models have been developed for Thyristor Controller Reactors (TCR) and other power electronic devices. Recently, these models have been extended to describe not just the steady-state harmonic interactions but harmonic transients as well. However, these dynamic models consistently do not incorporate models for controls. On the other hand, for the TCR as a FACTS Controller, dynamic models are available in which only the fundamental frequency component of the Controller is included; excluding harmonic interactions presumes that these do not affect the dynamics of the Controller. This thesis describes the development of a Harmonic State Space (HSS) model of a three phase TCR. As an extended state space description, this model describes the dynamics of the Controller while capturing harmonic interactions. It also includes the effect of switching instant variation which significantly improves the effectiveness of the model and allows the controller feedback characteristics to be included. The result of this model was validated with a purely time-domain simulation in PSCAD/EMTDC. Using the HSS to model a power system with TCR, it is illustrated that harmonic interactions play a significant role in the dynamics of the system. It is observed that for the specific system analysed, the least-damped pole-pair which dominates the dynamics of the system is associated with the 5th harmonic. Failure to include interactions with this specific harmonic produces an inaccurate dynamic description. Preliminary to the development of HSS model, a linearised harmonic domain model of a TCR which establishes the harmonic interactions across the device is also developed. Results of this model are validated with a time-domain simulation. This characterisation paves the way for a reduced harmonic state space model that is used in the HSS model. The principles and procedures established in this thesis can be applied to the development of models for other FACTS Controllers or HVDC links.