This paper presents a study on the power system transient stability improvement by means of interline power flow controller (IPFC). The power injection model of IPFC in transient analysis is proposed and can be easily incorporated into existing power systems. Based on the energy function analysis, the operation of IPFC should guarantee that the time derivative of the global energy of the system is not greater than zero in order to damp the electromechanical oscillations. Accordingly, control laws of IPFC are proposed for its application to the single-machine infinite-bus (SMIB) system and the multimachine systems, respectively. Numerical simulations on the corresponding model power systems are presented to demonstrate their effectiveness in improving power system transient stability.