Static VAR Compensator (SVC) and Static Synchronous Compensator (STATCOM) are important devices in FACTS family, and is widely recognized as an effective and economical means to solve the power system stability problem. SVC and STATCOM are used as shunt in transmission system. In the present work a series compensated Distributed transmission line (345KV, 450km, 50Hz) with a shunt FACTS devices SVC and STATCOM is considered to the optimal location of the shunt FACTS devices to get the highest possible benefits of maximum power transfer and system stability. Effect of change in degree of series compensation on the optimal location of the shunt FACTS device to get the highest possible benefit is studied. It is found that the optimal location of the shunt FACTS device varies with the change in the level of series compensation to get the maximum benefit in terms of power transfer capability and stability of the system. All the simulations for the above work have been carried out using MATLAB /SIMULINK software.