In today's competitive electricity market, managing transmission congestion is a major challenging issue due to operational constraints. Flexible AC transmission system (FACTS) device can be a choice to control the power flow in the congested transmission lines. This paper explores the use of thyristor controlled series compensator (TCSC) for power flow control in congested network using firefly algorithm (FA). The optimal location of TCSC is identified based on real power performance index and reduction of total system reactive power loss methods. Further in the congestion management (CM) problem, single line outage analysis is also performed. FA is used to determine the minimum total cost which includes production cost and TCSC cost. Results of five bus, IEEE 14 and IEEE 30 bus test systems indicate that FA provides minimum cost compared to the previous literature. The efficiency of the proposed FA for obtaining the high quality solution is also established.