The applicability of a STATCOM in wind farms has been investigated and the results indicate that it is able to supply reactive power requirements of the wind farm under various operating conditions, thereby improving the steady-state stability limit of the network. In this work, the wind turbine modelled is a SCIG that is an induction machine which requires reactive power compensation during grid side disturbances. An appropriately sized STATCOM can provide the necessary reactive power compensation when connected to grid. Also, a higher rating STATCOM can be used for efficient voltage control and improved reliability in grid connected wind farm. The additional voltage/var support provided by an external device such as a STATCOM can significantly improve the wind turbines fault recovery by more quickly restoring voltage characteristics. The extent to which a STATCOM can provide support depends on its rating. The higher the rating, the more support provided. The dynamic performanceof wind farms in a power grid is improved by the application of a STATCOM. The STATCOM helps to provide better voltage characteristics during faults like phase-phase to ground fault, three phase faults.