This paper deals with modeling and simulation of UPFC in IEEE 14 bus System with Induction Motor load for avoiding voltage swell. UPFC is an effective device, combining the features of the STATCOM and SSSC. UPFC can control active and reactive power flows and to optimize the system stability in a transmission line. When no UPFC is installed, real and reactive power through the transmission line cannot be controlled. The effect of reactive power compensation to prevent Swell has been analyzed with UPFC. A Power System Computer Aided Design/ Electromagnetic Transients including DC (PSCAD/EMTDC) is used to carry out simulations of the system under study and detailed results are shown to access the performance of UPFC on the voltage swell of the system.