This seminar report discusses power factor improvement using Unified Power Flow Controllers (UPFC), detailing the importance of power factor correction for enhancing the efficiency of power systems. It covers Flexible AC Transmission Systems (FACTS), their objectives, basic types, and the operations of UPFC, which integrates functionalities for controlling real and reactive power flow in transmission systems. The report highlights the growing necessity for effective power quality management due to the rise of electronic devices and their impact on power factor and harmonic distortion.