Coordinated control scheme for generator excitation and Static VAR Compensator (SVC) using an Indirect Adaptive Fuzzy logic Control (IAFLC) of multi-machine power systems based on multi-input-multi-output feedback linearization technique is developed in this paper. The power system considered in this paper consists of two generators and infinite bus connected through a network of transformers and transmission lines. The fuzzy controller is constructed from fuzzy feedback linearization controller whose parameters are adjusted indirectly from the estimates of plant parameters. The adaptation law adjusts the controller parameters on-line so that the plant outputs tracks the reference model outputs. Simulation results show that the proposed IAFLC controller, compared with a controller based on traditional linearization technique enhances the transient stability of the power system under sever abnormalities.