A 5 kVA, 415 V, 48–52 Hz, three-phase laboratory model Flexible AC Transmission System (FACTS) built around intelligent microprocessor based thyristor controlled switched capacitor is described. This laboratory model has been developed to conduct the feasibility studies for implementation of rapid impedance control on a 400 kV double circuit transmission corridor between Itarsi and Indore in the central part of India. The laboratory model uses scaled parameters of this transmission corridor for maintaining the receiving end voltage at Indore. The system studies reported in this paper include the simulation on PC and also the intelligent control aspect eg fault diagnosis and its identification, along with other steady state experimental investigations made on the newly developed laboratory model controller. A comparison between the simulated and experimental results reveals good correlation.