In this paper, operation of IPFC is analysed in transmission line power flow control. IPFC is used for controlling transmission line voltage, flow of power, decreasing power losses, and decreases the amplitude of an oscillation while transferring power. This paper deals with finding the location and optimal placement of interline power flow controller to maintain the voltage profile, active and reactive power flow in transmission line in power system to obtain the maximum possible benefit of power transfer and system stability.