Traditional methods for predicting transient stability of power systems such as the direct method, the time domain approach, and the energy function methods do not work well for online transient stability predictions problems. With the advent of Phasor Measurement Units (PMUs) in power systems, it is now possible to monitor the behavior of the system in real time and provide important information for transient stability assessment and enhancement. Techniques such as the rotor oscillation prediction method based on time series have made the prediction of system stability possible for real-time applications. However, methods of this type require more than 300 milliseconds after the start of a transient event to make reliable predictions. The dissertation provides an alternate prediction method for transient stability by taking advantage of the available PMUs data. It predicts transient stability using apparent impedance trajectories obtained from PMUs, decision trees, and FLDSD method. This method enables to find out the strategic locations for PMUs installation in the power system to rapidly predict transient stability. From the simulations performed, it is realized that system stability can be predicted in approximately 200 milliseconds (12 cycles). The main advantage of this method is its simplicity as the PMUs can record the apparent impedance trajectories in real-time without any previous calculations. Moreover, using decision trees built in CART, transient stability prediction becomes straightforward and computationally very fast. The optimum locations for PMUs placement can also be determined using this technique. After the transient instability prediction by the apparent impedance trajectories, a slow- coherency based intelligent controlled islanding scheme is also developed to restore the stability of system. It enables the generators in the same island to stay in synchronism and the imbalance between the generators and load demand is minimized. / Ph. D.