The work involved in the thesis is concentrated on modelling and control of UPFC. The overall objective is to provide effective methods and tools for assessing the impact of UPFC in the reinforcement of transmission systems. The thesis clarifies modelling and control of UPFC into several subproblems, in which the associated models, algorithms and control strategies of UPFC have been systematically reviewed. An electromagnetic transient prototype model of the UPFC has been set up by using its detailed power electronic device as well as its internal closed-loop controller. The problems encountered in the process of building such a model and the way of handling them by EMTP have been discussed. This EMTP-based simulator of SPWM UPFC implemented has provided a useful tool to assist the development and validation of more detailed and practical model of the UPFC for further studies. The steady-state modelling and control for the UPFC has been developed, including: (i) The power injection model of the UPFC suitable for its implementation in an optimal multiplier power flow computation method has been derived in rectangular form. The effectiveness of the proposed algorithm has been compared with the user defined model method. (ii) A systematic method for deriving the control capabilities of the UPFC has been proposed based on predicting the feasibility limit of the system. Using an index derived from optimal multiplier, three dimensional diagrams describing the ranges have been obtained. The results are also verified through the singular value decomposition algorithm. (iii) A power injection model based control method (PIM) has been proposed and implemented to directly derive the UPFC parameters as so to achieve the control objectives. The assumptions, algorithmic process and validation of the PIM have been investigated in detail. Its pros and cons are also discussed. (iv) Five internal limits of the UPFC device have been derived as the constraints to its performance. A complete set of control rules considering these limits as well as their implementation in the PlM have been constructed to form the basis of optimal UPFC control strategies for its steady-state local control. All the above proposed methods are tested and validated on the IEEE 30-bus system, a practical 306-bus system and a meshed network. The thesis concludes by suggesting the future research areas in further UPFC studies.