In this paper an Optimization based linear control design method is used to achieve a coordinated design of Power System Stabilizer (PSS) and Thyristor Controlled Series Capacitor (TCSC) for power system damping improvement with pre specified control design requirements. The settling time is considered as main performance criteria in time domain specification and gain and phase margins for frequency domain specifications. The main objective of the coordination of controllers is to improve the global stability through damping of oscillations by improving the damping ratio of the system and minimizing the settling time of the system response. Thus coordination increases the reliability of the system and maintains the required damping even one or more controllers are out of service and hence reduces the need for additional controller. Optimization based linear control design is used to determine the optimal gain and time constant setting of lead-lag controller parameters for PSS and TCSC. The coordinated PSS and TCSC controller is tested in the Single Machine Infinite Bus Power System (SMIB). Simulation is carried out using Matlab2011b. From the time domain simulation results it is observed that oscillations are damped out, settling time is reduced and damping ratio is improved. From bode plot it is inferred that gain and phase margin of the system is further improved to satisfy the system requirements. In the overall analysis, optimization based linear control design implemented for the coordination of PSS and TCSC controller satisfies the practical requirements of the power system oscillation damping problem, also shift the eigen values to the left half of the s-plane as far as possible and hence enhances the overall system stability