Pumped storage hydro power generation (PSHPG), a reliable renewable energy source with an energy storage feature, can impart efficient damping torque to power system oscillations to improve small signal stability with appropriate modelling and additional compensation through the governor. But ternary PSHPG (T-PSHPG) has the unique feature of hydraulic short circuit (HSC) mode, where both pumping and generating modes operate simultaneously. This study presents a novel fourth-order modified Heffron Phillips (MHP) model of T-PSHPG in coordination with a multi-band Power system stabilizer (MB-PSS) employing 2-way penstock, where primary penstock circulates water from the upper reservoir to the lower reservoir through the turbine and secondary penstock divides primary penstock, thereby creating short-circuit path through the pump. Also, this model includes additional reactive power droop control to maintain the voltage profile. A new state space matrix has been developed for coordinating T-PSHPG in HSC mode with MB-PSS. The control parameters of the proposed coordinated model are set by a new multi-objective differential evolution-improved particle swam optimization (DE-IPSO) algorithm. With variable load, random solar and wind source penetrations, it has been found that the proposed model can provide adequate damping actions. The sensitivity of the proposed model has been observed by varying critical model parameters by ±50 %. For all conditions, the settling time of speed variation is within 2.672 s to 5.951 s and the minimum damping ratio lies within 0.105 to 0.455. The minimum damping ratio is 0.32 and the settling time is found to be 3.1 s for system response subject to sudden solar power variation, which has been observed by shifting system eigenvalues toward the left half of the complex plane. Time and frequency domain parameters with sensitivity analysis predict system oscillations being damped effectively with consistency for the proposed modelling and control strategy. The results are verified in real-time with OPAL-RT real-time digital simulator. It has been justified by the present study that appropriate modelling of T-PSHPG along with coordinated control action provided by MB-PSS can handle critical power system oscillations efficiently and effective damping torque can be imparted in HSC mode.