Abstract: -Unified power flow controller (UPFC) consists two converters. There are three purposes of this paper, firstly to illustrate the UPFC device based VSC designs, then to describe a decoupling method the UPFC's controller into two separate control systems of the shunt and the series converters respectively in realizing an appropriate co-ordination between them. Finally, using the Matlab tool to build a discrete simulator for the UPFC with 12 pulse converters. The simulation results show that the developed UPFC model is reflected the static and dynamic characteristics of the UPFC. The harmonics of the output of the model are analyzed. Using the simple power system with UPFC as an example, the dynamics characteristics are studied. The fault status of the system with UPFC is analyzed too