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- This paper presents a novel application method of H∞ optimization method to the design of Power System Stabilizer(PSS) and experimental results through hardware simulator. The approach is focused on decision of performance index and selection strategy of weighting functions together with its tuning for direct design. As the purpose of the PSS is to increase system damping at very narrow frequency band, weighting functions are determined differently from the case of general servo system control. The designed PSS was confirmed through experiments on a hardware simulator.