Electrical power system is very complex, continuously subjected to various type of disturbance ,which cause a lot of power system instability and lowers its efficiency. So it requires very careful design of new equipment’s which are needed to improve electric power utilization, enhancing power system stability, power loss minimization and power transfer capability. Power loss is the major problem which decreases the efficiency of electrical equipment , disturb the quality and stability of the system. Minimization this loss is very important to increase transmission power flow. Power loss reduction have been focused in this research to solve the challenges happens in transmission systems. This research analyze the impact of using interline power flow controller (IPFC) in the transmission line. An interline power flow controller (IPFC) is a FACTS device used to control multiple transmission line power loss. This device is selected for loss minimization due to its ability to control most power system parameters like active power, reactive power, bus voltage, line impedance and load angle. The research is properly modeled and conducted using MATLAB code /SIMULINK software. In this research Active and Reactive power loss have been done .Maximum possible limit of the power loss have been managed. Construction of new transmission line would be omitted and the transmission line transmit power at maximum limit. In this research the mathematical analysis and model of IPFC have been done. Active and reactive power reference value have taken from the maximum value of transmission line that is 450MW and 129Mvar respectively. The location of IPFC determined by interpolation method and placed at sending end bus. The resulted found from different load demand increment scenario at 25% overload, 50% overload and 75% overload, the active power improved by 23.41%, 27.31% and 31.14% respectively. The reactive power from different scenario i.e. 25% overload, 50% overload and 75% overload power the reactive power improved 45.93%, 53.90 %, and 60.26% respectively. Bus voltage result found with in a permissible limit. Keywords: Transmission Line Loss, Active and Reactive Power, Newton Raphson Algorithm, IPFC, Efficiency