The main aim of the paper is to design a fuzzy-based STATCOM for power-system damping. The proposed controllers are designed to coordinate two control inputs - the voltage of the STATCOM location and the capacitor voltage of the STATCOM - to improve the transient stability of a Single-Machine Infinite Bus (SMIB) system and short-scale multi-machine system. The two different STATCOM controllers, namely, (a) conventional PI controller, and (b) fuzzy-based controller, are considered for comparative study. The proposed controllers are tested under two system conditions. The Power Oscillation Damping (POD) control and Power System Stabiliser (PSS) and their coordinated action with proposed controllers are tested. The results indicate that the coordinated POD and PSS action further improves the dynamic performance of the system.