The focus of this research is on deriving small signal stability models for different Flexible AC Transmission Systems devices by introducing a simple systematic method that is applicable to any dynamic device. Two different small signal models for Unified Power Flow Controllers are introduced. One model is called the power control mode and the other model is the voltage control mode. The two models are compared from transient stability point of view to show the necessity of developing both models for UPFC. The thesis also shows how to derive the small signal stability model of Static Synchronous Compensator, as the shunt branch of UPFC. The small signal stability models of both devices are then validated to ensure the accuracy of the derived models. STATCOM and UPFC power control mode are validated against PSCAD. The UPFC voltage control mode is validated against nonlinear solution of system equations.