This paper describes a novel way to account for magnetic saturation for simulation of synchronous machines in phase coordinate for power system studies. A synchronous machine model in phase coordinates is presented and the effect of saturation along direct and quadrature axes are taken into account by identifying the flux linkages of individual phases in terms of the flux linkages of direct and quadrature axes. The proposed model was simulated using the high-level dynamic simulation language (DSL) and its performance was compared with the standard dqo model in SIMPOW™ for a sample round rotor machine.