This research paper presents the dynamic modeling and simulation of a SVC (Static VAR Compensator) system using MATLAB-Simulink. The test system is composed of a generator, transmission line and a SVC in parallel with a resistive load. Two dynamic conditions have been simulated: system energization and a fault applied in the system. The authors have used Power System Blockset MATLAB Toolbox in this paper. The advantages and disadvantages of using the Power System Blockset are presented. The main characteristics of the control strategy are discussed.