The transmission line in an electrified railway system must provide power transmission within rnthe voltage limit at safe and quality conditions. Therefore, system analysis within the traction rnpower system is vital to the design and operation of an electrified railway. Loads in traction rnpower system are often characterized by their mobility, wide range of power variations, rnregeneration and service dependence. One of the main problems in the railway supply stationsrnare the voltage drops due to the changes of the load. Voltage drop in electrified railway have anrninfluence on the location of traction substation (reduces distance between traction transformerrnand section post length) and operating railway transport in a such condition disturbsrntransportation system, as a result the reactive power compensator should be installed to have arnbetter voltage at receiving end. rnEthiopian railway cooperation is constructing national railway transport from Sebeta to Meiso rnwith seven feeding traction substation from Sebeta to Adama. In this thesis traction network rnvoltage drop analysis is undertaken for various feeding condition. Taking sample section from rnSebeta substation to Indode substation analyses of the traction network voltage drop over thernfeeding condition has been conducted for different loading cases. The modeling and simulationrnof the system is done by MATLAB/SIMULINK software. rnThe systems without Static Synchronous Compensator (STATCOM) have been simulated torninvestigate the voltage drop for different operating cases. Accordingly, the voltage drop forrnnormal operation case is 5.922kV which is 27.55% voltage regulation. The voltage at the endrnpoint of the section is 21.56kV and is within the standard limit (TB10009-2005). However, thernvoltage drop for over zone (two consecutive sections without section post) is increased torn49.89% and the voltage at end point of the section becomes 18.346kV which is beyond thernstandard limit. rnWith the STATCOM, for normal operation case the voltage regulation becomes almost zero andrnfor the over zone operation it is reduced to 0.07%. This result clearly indicate that STATCOMrnapplication improve the voltage profile and performance of the railway systems.