Electro-mechanical oscillations are produced, in the machines of an interconnected power network, followed by a disturbance or due to high power transfer through weak tie lines. These oscillations should be damped as quickly as possible to ensure the reliable and stable operation of the network. To damp these oscillations different controllers, based on local or wide area signals, have been the subject of many papers. This paper presents the analysis of the performance of Conventional Power System Stabilizer (CPSS) and Fuzzy Logic Controller. Two area 14 bus symmetrical system is considered to demonstrate the performance of these controllers using Simulink/MATLAB. Simulation results depict fuzzy logic based controller having dual inputs of rotor speed deviation and generator's accelerating power is the better cost effective solution for damping the inter area oscillations specifically, in comparison with conventional power system stabilizer.