This paper presents an investigation on automatic generation control (AGC) in restructured power systems with multiple interconnected areas and multiple machines. A particle swarm optimized combined optimal fuzzy controller has been proposed. The results obtained with the proposed controller have been compared with the conventional PI controller and optimal controller to exhibit its robust performance. Furthermore, the proposed controller aims to rapidly achieve zero deviations in frequency and tie line power, thereby maintaining system synchronism. The PSO-optimized combined optimal fuzzy controller demonstrates superior performance in terms of peak transient deviation, settling periods, and dynamic oscillations compared to other controllers.