The paper reports the results of analysis of a multi-terminal UPFC used for power transfer and stability improvement of power systems. The analysis employed abc to qd0 transformation technique to obtain a time-invariant equation describing the system. A simulation of a-two transmission network rated at 20 and 15 MVA at 33 kV was investigated. Results confirm that converters rated appropriately can be used to transfer power between the lines. Converter power and current optimization were carried out to determine their operational limits.