Improved dynamic performance is a necessary condition for the normal operation of power systems. In response to assuring this improved performance various strategies have been implemented and yet various are at investigation. This work has investigated voltage source converter based HVDC transmission for power system stability improvement taking the North Western Ethiopian power system. The investigation developed a monopolar VSC-HVDC transmission model with its full control system and the developed system is integrated on north western Ethiopian electric power system model. The results are showing the technology is promising in addressing the problems of instability and opens eyes for further investigations to be made so as to exploit the versatile benefits that can be obtained through VSC-HVDC transmission.